Correlation Between Gabelli MultiMedia and Dunham Monthly

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

Diversification Opportunities for Gabelli MultiMedia and Dunham Monthly

-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between Gabelli and Dunham is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli MultiMedia Mutual and Dunham Monthly Distribution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Monthly Distr and Gabelli MultiMedia 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 Gabelli MultiMedia Mutual are associated (or correlated) with Dunham Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Monthly Distr has no effect on the direction of Gabelli MultiMedia i.e., Gabelli MultiMedia and Dunham Monthly go up and down completely randomly.

Pair Corralation between Gabelli MultiMedia and Dunham Monthly

Considering the 90-day investment horizon Gabelli MultiMedia Mutual is expected to generate 10.31 times more return on investment than Dunham Monthly. However, Gabelli MultiMedia is 10.31 times more volatile than Dunham Monthly Distribution. It trades about 0.04 of its potential returns per unit of risk. Dunham Monthly Distribution is currently generating about 0.21 per unit of risk. If you would invest  405.00  in Gabelli MultiMedia Mutual on September 5, 2025 and sell it today you would earn a total of  8.00  from holding Gabelli MultiMedia Mutual or generate 1.98% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Gabelli MultiMedia Mutual  vs.  Dunham Monthly Distribution

 Performance 
       Timeline  
Gabelli MultiMedia Mutual 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli MultiMedia Mutual are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Gabelli MultiMedia is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
Dunham Monthly Distr 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Dunham Monthly Distribution are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Dunham Monthly is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gabelli MultiMedia and Dunham Monthly Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gabelli MultiMedia and Dunham Monthly

The main advantage of trading using opposite Gabelli MultiMedia and Dunham Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli MultiMedia position performs unexpectedly, Dunham Monthly 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 Dunham Monthly will offset losses from the drop in Dunham Monthly's long position.
The idea behind Gabelli MultiMedia Mutual and Dunham Monthly Distribution 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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