Correlation Between Gabelli Utility and BlackRock Limited

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Can any of the company-specific risk be diversified away by investing in both Gabelli Utility and BlackRock Limited 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 Utility and BlackRock Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gabelli Utility Closed and BlackRock Limited Duration, you can compare the effects of market volatilities on Gabelli Utility and BlackRock Limited 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 Utility with a short position of BlackRock Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Utility and BlackRock Limited.

Diversification Opportunities for Gabelli Utility and BlackRock Limited

0.23
  Correlation Coefficient

Modest diversification

The 3 months correlation between Gabelli and BlackRock is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gabelli Utility Closed and BlackRock Limited Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Limited and Gabelli Utility 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 Utility Closed are associated (or correlated) with BlackRock Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Limited has no effect on the direction of Gabelli Utility i.e., Gabelli Utility and BlackRock Limited go up and down completely randomly.

Pair Corralation between Gabelli Utility and BlackRock Limited

Considering the 90-day investment horizon Gabelli Utility Closed is expected to generate 2.38 times more return on investment than BlackRock Limited. However, Gabelli Utility is 2.38 times more volatile than BlackRock Limited Duration. It trades about 0.06 of its potential returns per unit of risk. BlackRock Limited Duration is currently generating about 0.04 per unit of risk. If you would invest  583.00  in Gabelli Utility Closed on August 18, 2025 and sell it today you would earn a total of  19.00  from holding Gabelli Utility Closed or generate 3.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Gabelli Utility Closed  vs.  BlackRock Limited Duration

 Performance 
       Timeline  
Gabelli Utility Closed 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Utility Closed are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of comparatively stable basic indicators, Gabelli Utility is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
BlackRock Limited 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Limited Duration are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable essential indicators, BlackRock Limited is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Gabelli Utility and BlackRock Limited Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gabelli Utility and BlackRock Limited

The main advantage of trading using opposite Gabelli Utility and BlackRock Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Utility position performs unexpectedly, BlackRock Limited 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 BlackRock Limited will offset losses from the drop in BlackRock Limited's long position.
The idea behind Gabelli Utility Closed and BlackRock Limited Duration pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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