Correlation Between Gabelli Utility and Axs Thomson

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

By analyzing existing cross correlation between Gabelli Utility Closed and Axs Thomson Reuters, you can compare the effects of market volatilities on Gabelli Utility and Axs Thomson 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 Axs Thomson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Utility and Axs Thomson.

Diversification Opportunities for Gabelli Utility and Axs Thomson

0.39

Correlation Coefficient

Gabelli Utility  Axs Thomson

Weak diversification

The 3 months correlation between Gabelli and Axs is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Utility Closed and Axs Thomson Reuters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axs Thomson Reuters 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 Gabelli Utility Closed are associated (or correlated) with Axs Thomson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axs Thomson Reuters has no effect on the direction of Gabelli Utility i.e., Gabelli Utility and Axs Thomson go up and down completely randomly.

Pair Corralation between Gabelli Utility and Axs Thomson

Considering the 90-day investment horizon Gabelli Utility Closed is expected to generate 0.5 times more return on investment than Axs Thomson. However, Gabelli Utility Closed is 1.99 times less risky than Axs Thomson. It trades about 0.11 of its potential returns per unit of risk. Axs Thomson Reuters is currently generating about -0.06 per unit of risk. If you would invest  496.00  in Gabelli Utility Closed on December 19, 2024 and sell it today you would earn a total of  34.00  from holding Gabelli Utility Closed or generate 6.85% return on investment over 90 days.

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

Gabelli Utility Closed  vs.  Axs Thomson Reuters

Gabelli Utility Closed

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Utility Closed are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively abnormal basic indicators, Gabelli Utility may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Axs Thomson Reuters

Risk-Adjusted Performance

Very Weak

Over the last 90 days Axs Thomson Reuters 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 Utility and Axs Thomson

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

The idea behind Gabelli Utility Closed and Axs Thomson Reuters 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..