Correlation Between Meridian Trarian and Gabelli Gold
Can any of the company-specific risk be diversified away by investing in both Meridian Trarian and Gabelli Gold 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 Meridian Trarian and Gabelli Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridian Trarian Fund and Gabelli Gold Fund, you can compare the effects of market volatilities on Meridian Trarian and Gabelli Gold 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 Meridian Trarian with a short position of Gabelli Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridian Trarian and Gabelli Gold.
Diversification Opportunities for Meridian Trarian and Gabelli Gold
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meridian and Gabelli is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Meridian Trarian Fund and Gabelli Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Gold and Meridian Trarian 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 Meridian Trarian Fund are associated (or correlated) with Gabelli Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Gold has no effect on the direction of Meridian Trarian i.e., Meridian Trarian and Gabelli Gold go up and down completely randomly.
Pair Corralation between Meridian Trarian and Gabelli Gold
Assuming the 90 days horizon Meridian Trarian Fund is expected to under-perform the Gabelli Gold. But the mutual fund apears to be less risky and, when comparing its historical volatility, Meridian Trarian Fund is 1.94 times less risky than Gabelli Gold. The mutual fund trades about -0.21 of its potential returns per unit of risk. The Gabelli Gold Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,486 in Gabelli Gold Fund on August 24, 2025 and sell it today you would earn a total of 64.00 from holding Gabelli Gold Fund or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meridian Trarian Fund vs. Gabelli Gold Fund
Performance |
| Timeline |
| Meridian Trarian |
| Gabelli Gold |
Meridian Trarian and Gabelli Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridian Trarian and Gabelli Gold
The main advantage of trading using opposite Meridian Trarian and Gabelli Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridian Trarian position performs unexpectedly, Gabelli Gold 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 Gabelli Gold will offset losses from the drop in Gabelli Gold's long position.| Meridian Trarian vs. Meridian Trarian Fund | Meridian Trarian vs. Dreyfus Intermediate Municipal | Meridian Trarian vs. Small Pany Fund | Meridian Trarian vs. Small Pany Fund |
| Gabelli Gold vs. Gabelli Gold Fund | Gabelli Gold vs. Gamco Global | Gabelli Gold vs. Congress Mid Cap | Gabelli Gold vs. The Brown Capital |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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