Correlation Between Gabelli Gold and Nuveen California
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Nuveen California 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 Gold and Nuveen California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Gold Fund and Nuveen California High, you can compare the effects of market volatilities on Gabelli Gold and Nuveen California 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 Gold with a short position of Nuveen California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Nuveen California.
Diversification Opportunities for Gabelli Gold and Nuveen California
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Nuveen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Nuveen California High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen California High and Gabelli Gold 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 Gold Fund are associated (or correlated) with Nuveen California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen California High has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Nuveen California go up and down completely randomly.
Pair Corralation between Gabelli Gold and Nuveen California
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 10.83 times more return on investment than Nuveen California. However, Gabelli Gold is 10.83 times more volatile than Nuveen California High. It trades about 0.17 of its potential returns per unit of risk. Nuveen California High is currently generating about 0.4 per unit of risk. If you would invest 3,833 in Gabelli Gold Fund on September 1, 2025 and sell it today you would earn a total of 1,097 from holding Gabelli Gold Fund or generate 28.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Nuveen California High
Performance |
| Timeline |
| Gabelli Gold |
| Nuveen California High |
Gabelli Gold and Nuveen California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Nuveen California
The main advantage of trading using opposite Gabelli Gold and Nuveen California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Nuveen California 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 Nuveen California will offset losses from the drop in Nuveen California's long position.| Gabelli Gold vs. Scout E Bond | Gabelli Gold vs. Gmo High Yield | Gabelli Gold vs. Pace Strategic Fixed | Gabelli Gold vs. Bbh Intermediate Municipal |
| Nuveen California vs. Franklin High Yield | Nuveen California vs. Voya High Yield | Nuveen California vs. High Yield Fund | Nuveen California vs. Muzinich High Yield |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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