Correlation Between Gabelli RBI and Zillow Group

Can any of the company-specific risk be diversified away by investing in both Gabelli RBI and Zillow Group 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 RBI and Zillow Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gabelli RBI NextShares and Zillow Group Class, you can compare the effects of market volatilities on Gabelli RBI and Zillow Group 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 RBI with a short position of Zillow Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli RBI and Zillow Group.

Diversification Opportunities for Gabelli RBI and Zillow Group

0.0

Correlation Coefficient

Gabelli RBI  Zillow Group

Pay attention - limited upside

The 3 months correlation between Gabelli and Zillow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli RBI NextShares and Zillow Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zillow Group Class and Gabelli RBI 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 RBI NextShares are associated (or correlated) with Zillow Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zillow Group Class has no effect on the direction of Gabelli RBI i.e., Gabelli RBI and Zillow Group go up and down completely randomly.

Pair Corralation between Gabelli RBI and Zillow Group

If you would invest  6,385  in Zillow Group Class on September 30, 2024 and sell it today you would earn a total of  1,233  from holding Zillow Group Class or generate 19.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Gabelli RBI NextShares  vs.  Zillow Group Class

Gabelli RBI NextShares

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gabelli RBI NextShares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Gabelli RBI is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Zillow Group Class

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Zillow Group Class are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Zillow Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gabelli RBI and Zillow Group

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

The idea behind Gabelli RBI NextShares and Zillow Group Class 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.