Correlation Between Gabelli MultiMedia and Dunham Monthly
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 Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli MultiMedia Mutual vs. Dunham Monthly Distribution
Performance |
| Timeline |
| Gabelli MultiMedia Mutual |
| Dunham Monthly Distr |
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.| Gabelli MultiMedia vs. Critic Clothing | Gabelli MultiMedia vs. Sekisui Chemical Co | Gabelli MultiMedia vs. Yuexiu Transport Infrastructure | Gabelli MultiMedia vs. C3 Metals |
| Dunham Monthly vs. Aqr Diversified Arbitrage | Dunham Monthly vs. Stone Ridge Diversified | Dunham Monthly vs. Victory Diversified Stock | Dunham Monthly vs. Eaton Vance Diversified |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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