Correlation Between Gabelli Global and Western Asset
Can any of the company-specific risk be diversified away by investing in both Gabelli Global and Western Asset 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 Global and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Global Utility and Western Asset Global, you can compare the effects of market volatilities on Gabelli Global and Western Asset 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 Global with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Global and Western Asset.
Diversification Opportunities for Gabelli Global and Western Asset
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gabelli and Western is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Global Utility and Western Asset Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Global and Gabelli 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 Gabelli Global Utility are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Global has no effect on the direction of Gabelli Global i.e., Gabelli Global and Western Asset go up and down completely randomly.
Pair Corralation between Gabelli Global and Western Asset
Considering the 90-day investment horizon Gabelli Global Utility is expected to generate 1.49 times more return on investment than Western Asset. However, Gabelli Global is 1.49 times more volatile than Western Asset Global. It trades about 0.15 of its potential returns per unit of risk. Western Asset Global is currently generating about 0.05 per unit of risk. If you would invest 1,791 in Gabelli Global Utility on October 5, 2025 and sell it today you would earn a total of 142.00 from holding Gabelli Global Utility or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gabelli Global Utility vs. Western Asset Global
Performance |
| Timeline |
| Gabelli Global Utility |
| Western Asset Global |
Gabelli Global and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Global and Western Asset
The main advantage of trading using opposite Gabelli Global and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Global position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Gabelli Global vs. Gabelli Global Small | Gabelli Global vs. GAMCO Natural Resources | Gabelli Global vs. Bancroft Fund Limited | Gabelli Global vs. Alger Midcap Growth |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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