Correlation Between Gabelli Gold and Gold And

Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Gold And 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 Gold And 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 Gold And Precious, you can compare the effects of market volatilities on Gabelli Gold and Gold And 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 Gold And. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Gold And.

Diversification Opportunities for Gabelli Gold and Gold And

1.0

Correlation Coefficient

Gabelli Gold  Gold And

No risk reduction

The 3 months correlation between Gabelli and Gold is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Gold And. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Gold And go up and down completely randomly.

Pair Corralation between Gabelli Gold and Gold And

Assuming the 90 days horizon Gabelli Gold is expected to generate 1.04 times less return on investment than Gold And. But when comparing it to its historical volatility, Gabelli Gold Fund is 1.18 times less risky than Gold And. It trades about 0.32 of its potential returns per unit of risk. Gold And Precious is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  1,136  in Gold And Precious on December 29, 2024 and sell it today you would earn a total of  382.00  from holding Gold And Precious or generate 33.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Gabelli Gold Fund  vs.  Gold And Precious

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 25 (%) 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.

Gold And Precious

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gold And Precious are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gold And showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gabelli Gold and Gold And

The main advantage of trading using opposite Gabelli Gold and Gold And positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Gold And 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 Gold And will offset losses from the drop in Gold And's long position.

The idea behind Gabelli Gold Fund and Gold And Precious 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.