Correlation Between Gabelli Gold and Short Nasdaq
Can any of the company-specific risk be diversified away by investing in both Gabelli Gold and Short Nasdaq 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 Short Nasdaq 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 Short Nasdaq 100 Profund, you can compare the effects of market volatilities on Gabelli Gold and Short Nasdaq 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 Short Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Gold and Short Nasdaq.
Diversification Opportunities for Gabelli Gold and Short Nasdaq
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gabelli and Short is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Gold Fund and Short Nasdaq 100 Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Nasdaq 100 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 Short Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Nasdaq 100 has no effect on the direction of Gabelli Gold i.e., Gabelli Gold and Short Nasdaq go up and down completely randomly.
Pair Corralation between Gabelli Gold and Short Nasdaq
Assuming the 90 days horizon Gabelli Gold Fund is expected to generate 2.38 times more return on investment than Short Nasdaq. However, Gabelli Gold is 2.38 times more volatile than Short Nasdaq 100 Profund. It trades about 0.08 of its potential returns per unit of risk. Short Nasdaq 100 Profund is currently generating about -0.3 per unit of risk. If you would invest 2,905 in Gabelli Gold Fund on April 29, 2025 and sell it today you would earn a total of 260.00 from holding Gabelli Gold Fund or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Gold Fund vs. Short Nasdaq 100 Profund
Performance |
| Timeline |
| Gabelli Gold |
| Short Nasdaq 100 |
Gabelli Gold and Short Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Gold and Short Nasdaq
The main advantage of trading using opposite Gabelli Gold and Short Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Gold position performs unexpectedly, Short Nasdaq 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 Short Nasdaq will offset losses from the drop in Short Nasdaq's long position.| Gabelli Gold vs. World Precious Minerals | Gabelli Gold vs. Goldman Sachs International | Gabelli Gold vs. Vy Goldman Sachs | Gabelli Gold vs. Fidelity Advisor Gold |
| Short Nasdaq vs. Jpmorgan Large Cap | Short Nasdaq vs. Astonherndon Large Cap | Short Nasdaq vs. Nuveen Large Cap | Short Nasdaq vs. M Large Cap |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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