Correlation Between BlackRock Utility and Gabelli Gold

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Can any of the company-specific risk be diversified away by investing in both BlackRock Utility and Gabelli Gold 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 BlackRock Utility and Gabelli Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlackRock Utility Infrastructure and Gabelli Gold Fund, you can compare the effects of market volatilities on BlackRock Utility and Gabelli Gold 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 BlackRock Utility with a short position of Gabelli Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlackRock Utility and Gabelli Gold.

Diversification Opportunities for BlackRock Utility and Gabelli Gold

-0.1
  Correlation Coefficient

Good diversification

The 3 months correlation between BlackRock and Gabelli is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock Utility Infrastructu and Gabelli Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Gold and BlackRock Utility 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 BlackRock Utility Infrastructure are associated (or correlated) with Gabelli Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Gold has no effect on the direction of BlackRock Utility i.e., BlackRock Utility and Gabelli Gold go up and down completely randomly.

Pair Corralation between BlackRock Utility and Gabelli Gold

Considering the 90-day investment horizon BlackRock Utility Infrastructure is expected to under-perform the Gabelli Gold. But the stock apears to be less risky and, when comparing its historical volatility, BlackRock Utility Infrastructure is 2.6 times less risky than Gabelli Gold. The stock trades about -0.01 of its potential returns per unit of risk. The Gabelli Gold Fund is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  3,827  in Gabelli Gold Fund on August 30, 2025 and sell it today you would earn a total of  1,216  from holding Gabelli Gold Fund or generate 31.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BlackRock Utility Infrastructu  vs.  Gabelli Gold Fund

 Performance 
       Timeline  
BlackRock Utility 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days BlackRock Utility Infrastructure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, BlackRock Utility is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
Gabelli Gold 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Gold Fund are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Gabelli Gold showed solid returns over the last few months and may actually be approaching a breakup point.

BlackRock Utility and Gabelli Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BlackRock Utility and Gabelli Gold

The main advantage of trading using opposite BlackRock Utility and Gabelli Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock Utility position performs unexpectedly, Gabelli Gold 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 Gold will offset losses from the drop in Gabelli Gold's long position.
The idea behind BlackRock Utility Infrastructure and Gabelli Gold Fund 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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