Correlation Between Nuveen Floating and Gamco Global

Can any of the company-specific risk be diversified away by investing in both Nuveen Floating and Gamco Global 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 Nuveen Floating and Gamco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nuveen Floating Rate and Gamco Global, you can compare the effects of market volatilities on Nuveen Floating and Gamco Global 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 Nuveen Floating with a short position of Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuveen Floating and Gamco Global.

Diversification Opportunities for Nuveen Floating and Gamco Global

0.0

Correlation Coefficient

Nuveen Floating  Gamco Global

Pay attention - limited upside

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

Pair Corralation between Nuveen Floating and Gamco Global

If you would invest  376.00  in Gamco Global on December 27, 2024 and sell it today you would earn a total of  58.00  from holding Gamco Global or generate 15.43% return on investment over 90 days.

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

Nuveen Floating Rate  vs.  Gamco Global

Nuveen Floating Rate

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuveen Floating Rate has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Nuveen Floating is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Gamco Global

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Gamco Global are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak technical and fundamental indicators, Gamco Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nuveen Floating and Gamco Global

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

The idea behind Nuveen Floating Rate and Gamco Global 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.