Correlation Between Gabelli Utility and Ellsworth Growth
Can any of the company-specific risk be diversified away by investing in both Gabelli Utility and Ellsworth Growth 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 Utility and Ellsworth Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Utility and Ellsworth Growth and, you can compare the effects of market volatilities on Gabelli Utility and Ellsworth Growth 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 Utility with a short position of Ellsworth Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Utility and Ellsworth Growth.
Diversification Opportunities for Gabelli Utility and Ellsworth Growth
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gabelli and Ellsworth is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Utility and Ellsworth Growth and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellsworth Growth and Gabelli Utility 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 The Gabelli Utility are associated (or correlated) with Ellsworth Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellsworth Growth has no effect on the direction of Gabelli Utility i.e., Gabelli Utility and Ellsworth Growth go up and down completely randomly.
Pair Corralation between Gabelli Utility and Ellsworth Growth
Assuming the 90 days trading horizon The Gabelli Utility is expected to generate 0.51 times more return on investment than Ellsworth Growth. However, The Gabelli Utility is 1.98 times less risky than Ellsworth Growth. It trades about 0.01 of its potential returns per unit of risk. Ellsworth Growth and is currently generating about -0.07 per unit of risk. If you would invest 2,434 in The Gabelli Utility on September 24, 2024 and sell it today you would earn a total of 6.00 from holding The Gabelli Utility or generate 0.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Gabelli Utility vs. Ellsworth Growth and
Performance |
Timeline |
Gabelli Utility |
Ellsworth Growth |
Gabelli Utility and Ellsworth Growth Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gabelli Utility and Ellsworth Growth
The main advantage of trading using opposite Gabelli Utility and Ellsworth Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Utility position performs unexpectedly, Ellsworth Growth 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 Ellsworth Growth will offset losses from the drop in Ellsworth Growth's long position.Gabelli Utility vs. The Gabelli Equity | Gabelli Utility vs. Oxford Lane Capital | Gabelli Utility vs. The Gabelli Multimedia | Gabelli Utility vs. Tri Continental PFD |
Ellsworth Growth vs. Bancroft Fund | Ellsworth Growth vs. GAMCO Natural Resources | Ellsworth Growth vs. The Gabelli Multimedia | Ellsworth Growth vs. GAMCO Global Gold |
Check out your portfolio center.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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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