Correlation Between New York and Gabelli Equity
Can any of the company-specific risk be diversified away by investing in both New York and Gabelli Equity 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 New York and Gabelli Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Mortgage and The Gabelli Equity, you can compare the effects of market volatilities on New York and Gabelli Equity 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 New York with a short position of Gabelli Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Gabelli Equity.
Diversification Opportunities for New York and Gabelli Equity
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between New and Gabelli is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding New York Mortgage and The Gabelli Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Equity and New York 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 New York Mortgage are associated (or correlated) with Gabelli Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Equity has no effect on the direction of New York i.e., New York and Gabelli Equity go up and down completely randomly.
Pair Corralation between New York and Gabelli Equity
Assuming the 90 days horizon New York Mortgage is expected to generate 0.56 times more return on investment than Gabelli Equity. However, New York Mortgage is 1.79 times less risky than Gabelli Equity. It trades about 0.02 of its potential returns per unit of risk. The Gabelli Equity is currently generating about -0.05 per unit of risk. If you would invest 2,513 in New York Mortgage on December 2, 2024 and sell it today you would earn a total of 6.00 from holding New York Mortgage or generate 0.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
New York Mortgage vs. The Gabelli Equity
Performance |
Timeline |
New York Mortgage |
Gabelli Equity |
New York and Gabelli Equity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with New York and Gabelli Equity
The main advantage of trading using opposite New York and Gabelli Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, Gabelli Equity 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 Equity will offset losses from the drop in Gabelli Equity's long position.New York vs. New York Mortgage | New York vs. AGNC Investment Corp | New York vs. Chimera Investment | New York vs. AGNC Investment Corp |
Gabelli Equity vs. The Gabelli Multimedia | Gabelli Equity vs. The Gabelli Equity | Gabelli Equity vs. The Gabelli Multimedia | Gabelli Equity vs. The Gabelli Dividend |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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