Correlation Between Gabelli Gold and Knights Of

Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Knights Of at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gabelli Gold and Knights Of into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gabelli Gold Fund and Knights Of Columbus, you can compare the effects of market volatilities on Gabelli Gold and Knights Of and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gabelli Gold with a short position of Knights Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Knights Of.

Diversification Opportunities for Gabelli Gold and Knights Of

-0.38

Correlation Coefficient

Gabelli Gold  Knights Of

Very good diversification

The 3 months correlation between Gabelli and Knights is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Knights Of Columbus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knights Of Columbus and Gabelli Gold is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gabelli Gold Fund are associated (or correlated) with Knights Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knights Of Columbus has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Knights Of go up and down completely randomly.

Pair Corralation between Gabelli Gold and Knights Of

Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 1.32 times more return on investment than Knights Of. However, Gabelli Gold is 1.32 times more volatile than Knights Of Columbus. It trades about 0.3 of its potential returns per unit of risk. Knights Of Columbus is currently generating about -0.09 per unit of risk. If you would invest  2,040  in Gabelli Gold Fund on December 22, 2024 and sell it today you would earn a total of  586.00  from holding Gabelli Gold Fund or generate 28.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gabelli Gold Fund  vs.  Knights Of Columbus

Gabelli Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Gold Fund are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gabelli Gold showed solid returns over the last few months and may actually be approaching a breakup point.

Knights Of Columbus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Knights Of Columbus has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Gabelli Gold and Knights Of

The main advantage of trading using opposite Gabelli Gold and Knights Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Knights Of can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Knights Of will offset losses from the drop in Knights Of's long position.

The idea behind Gabelli Gold Fund and Knights Of Columbus pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.