Correlation Between Investment Managers and Gabelli Gold
Can any of the company-specific risk be diversified away by investing in both Investment Managers 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 Investment Managers and Gabelli Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investment Managers Series and Gabelli Gold Fund, you can compare the effects of market volatilities on Investment Managers 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 Investment Managers with a short position of Gabelli Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Managers and Gabelli Gold.
Diversification Opportunities for Investment Managers and Gabelli Gold
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Investment and Gabelli is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Investment Managers Series and Gabelli Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Gold and Investment Managers 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 Investment Managers Series 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 Investment Managers i.e., Investment Managers and Gabelli Gold go up and down completely randomly.
Pair Corralation between Investment Managers and Gabelli Gold
Assuming the 90 days horizon Investment Managers Series is expected to generate 0.92 times more return on investment than Gabelli Gold. However, Investment Managers Series is 1.08 times less risky than Gabelli Gold. It trades about 0.18 of its potential returns per unit of risk. Gabelli Gold Fund is currently generating about 0.12 per unit of risk. If you would invest 1,360 in Investment Managers Series on May 31, 2025 and sell it today you would earn a total of 236.00 from holding Investment Managers Series or generate 17.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Investment Managers Series vs. Gabelli Gold Fund
Performance |
| Timeline |
| Investment Managers |
| Gabelli Gold |
Investment Managers and Gabelli Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Managers and Gabelli Gold
The main advantage of trading using opposite Investment Managers and Gabelli Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Managers 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.| Investment Managers vs. Blackrock High Yield | Investment Managers vs. Federated High Yield | Investment Managers vs. Multi Manager High Yield | Investment Managers vs. Transamerica High Yield |
| Gabelli Gold vs. Gabelli Global Financial | Gabelli Gold vs. Goldman Sachs Financial | Gabelli Gold vs. Blackrock Financial Institutions | Gabelli Gold vs. Financial Industries Fund |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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