Correlation Between Gabelli Value and Comstock Capital

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

By analyzing existing cross correlation between The Gabelli Value and Comstock Capital Value, you can compare the effects of market volatilities on Gabelli Value and Comstock Capital 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 Value with a short position of Comstock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Value and Comstock Capital.

Diversification Opportunities for Gabelli Value and Comstock Capital

0.86

Correlation Coefficient

Gabelli Value  Comstock Capital

Very poor diversification

The 3 months correlation between Gabelli and Comstock is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Value and Comstock Capital Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Capital Value and Gabelli Value 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 Value are associated (or correlated) with Comstock Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Capital Value has no effect on the direction of Gabelli Value i.e., Gabelli Value and Comstock Capital go up and down completely randomly.

Pair Corralation between Gabelli Value and Comstock Capital

Assuming the 90 days horizon The Gabelli Value is expected to generate 2.8 times more return on investment than Comstock Capital. However, Gabelli Value is 2.8 times more volatile than Comstock Capital Value. It trades about 0.01 of its potential returns per unit of risk. Comstock Capital Value is currently generating about 0.04 per unit of risk. If you would invest  648.00  in The Gabelli Value on September 30, 2024 and sell it today you would earn a total of  8.00  from holding The Gabelli Value or generate 1.23% return on investment over 90 days.

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

The Gabelli Value  vs.  Comstock Capital Value

Gabelli Value

Risk-Adjusted Performance

0 of 100

Very Weak

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

Comstock Capital Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Comstock Capital Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Comstock Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Gabelli Value and Comstock Capital

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

The idea behind The Gabelli Value and Comstock Capital Value 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.