Correlation Between Gamco Global and Sa Emerging
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Sa Emerging 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 Gamco Global and Sa Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Opportunity and Sa Emerging Markets, you can compare the effects of market volatilities on Gamco Global and Sa Emerging 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 Gamco Global with a short position of Sa Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Sa Emerging.
Diversification Opportunities for Gamco Global and Sa Emerging
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gamco and SAEMX is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Opportunity and Sa Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Emerging Markets and Gamco Global 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 Gamco Global Opportunity are associated (or correlated) with Sa Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Emerging Markets has no effect on the direction of Gamco Global i.e., Gamco Global and Sa Emerging go up and down completely randomly.
Pair Corralation between Gamco Global and Sa Emerging
Assuming the 90 days horizon Gamco Global is expected to generate 1.93 times less return on investment than Sa Emerging. But when comparing it to its historical volatility, Gamco Global Opportunity is 1.03 times less risky than Sa Emerging. It trades about 0.2 of its potential returns per unit of risk. Sa Emerging Markets is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,011 in Sa Emerging Markets on March 27, 2025 and sell it today you would earn a total of 119.00 from holding Sa Emerging Markets or generate 11.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Global Opportunity vs. Sa Emerging Markets
Performance |
| Timeline |
| Gamco Global Opportunity |
| Sa Emerging Markets |
Gamco Global and Sa Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Global and Sa Emerging
The main advantage of trading using opposite Gamco Global and Sa Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Sa Emerging 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 Sa Emerging will offset losses from the drop in Sa Emerging's long position.| Gamco Global vs. Ms Global Fixed | Gamco Global vs. Qs International Equity | Gamco Global vs. Tax Managed International Equity | Gamco Global vs. Transamerica Funds |
| Sa Emerging vs. Hartford Healthcare Hls | Sa Emerging vs. Prudential Health Sciences | Sa Emerging vs. Eventide Healthcare Life | Sa Emerging vs. Vanguard Health Care |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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