Correlation Between Issachar Fund and The Gabelli

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

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

Diversification Opportunities for Issachar Fund and The Gabelli

0.67

Correlation Coefficient

Issachar Fund  The Gabelli

Poor diversification

The 3 months correlation between Issachar and The is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and The Gabelli Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Asset and Issachar Fund 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 Issachar Fund Class are associated (or correlated) with The Gabelli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Asset has no effect on the direction of Issachar Fund i.e., Issachar Fund and The Gabelli go up and down completely randomly.

Pair Corralation between Issachar Fund and The Gabelli

Assuming the 90 days horizon Issachar Fund is expected to generate 2.06 times less return on investment than The Gabelli. But when comparing it to its historical volatility, Issachar Fund Class is 1.03 times less risky than The Gabelli. It trades about 0.0 of its potential returns per unit of risk. The Gabelli Asset is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  4,663  in The Gabelli Asset on December 3, 2024 and sell it today you would earn a total of  6.00  from holding The Gabelli Asset or generate 0.13% return on investment over 90 days.

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

Issachar Fund Class  vs.  The Gabelli Asset

Issachar Fund Class

Risk-Adjusted Performance

Very Weak

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

Gabelli Asset

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Gabelli Asset has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Issachar Fund and The Gabelli

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

The idea behind Issachar Fund Class and The Gabelli Asset 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.