Correlation Between Munivest Fund and Gabelli Convertible

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

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

Diversification Opportunities for Munivest Fund and Gabelli Convertible

-0.09

Correlation Coefficient

Munivest Fund  Gabelli Convertible

Good diversification

The 3 months correlation between Munivest and Gabelli is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund and Gabelli Convertible And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Convertible And and Munivest 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 Munivest Fund are associated (or correlated) with Gabelli Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Convertible And has no effect on the direction of Munivest Fund i.e., Munivest Fund and Gabelli Convertible go up and down completely randomly.

Pair Corralation between Munivest Fund and Gabelli Convertible

Considering the 90-day investment horizon Munivest Fund is expected to under-perform the Gabelli Convertible. But the fund apears to be less risky and, when comparing its historical volatility, Munivest Fund is 1.74 times less risky than Gabelli Convertible. The fund trades about -0.26 of its potential returns per unit of risk. The Gabelli Convertible And is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  383.00  in Gabelli Convertible And on September 22, 2024 and sell it today you would earn a total of  7.00  from holding Gabelli Convertible And or generate 1.83% return on investment over 90 days.

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

Munivest Fund  vs.  Gabelli Convertible And

Munivest Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Munivest Fund has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Munivest Fund is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Gabelli Convertible And

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Convertible And are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable fundamental indicators, Gabelli Convertible is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Munivest Fund and Gabelli Convertible

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

The idea behind Munivest Fund and Gabelli Convertible And 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.