Correlation Between Nasdaq-100 Index and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Index and Gabelli Global 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 Nasdaq-100 Index and Gabelli Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Index Fund and Gabelli Global Financial, you can compare the effects of market volatilities on Nasdaq-100 Index and Gabelli Global 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 Nasdaq-100 Index with a short position of Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Index and Gabelli Global.
Diversification Opportunities for Nasdaq-100 Index and Gabelli Global
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nasdaq-100 and Gabelli is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Index Fund and Gabelli Global Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Financial and Nasdaq-100 Index 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 Nasdaq 100 Index Fund are associated (or correlated) with Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Financial has no effect on the direction of Nasdaq-100 Index i.e., Nasdaq-100 Index and Gabelli Global go up and down completely randomly.
Pair Corralation between Nasdaq-100 Index and Gabelli Global
Assuming the 90 days horizon Nasdaq-100 Index is expected to generate 1.34 times less return on investment than Gabelli Global. But when comparing it to its historical volatility, Nasdaq 100 Index Fund is 1.05 times less risky than Gabelli Global. It trades about 0.22 of its potential returns per unit of risk. Gabelli Global Financial is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,727 in Gabelli Global Financial on May 30, 2025 and sell it today you would earn a total of 250.00 from holding Gabelli Global Financial or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Index Fund vs. Gabelli Global Financial
Performance |
| Timeline |
| Nasdaq 100 Index |
| Gabelli Global Financial |
Nasdaq-100 Index and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Index and Gabelli Global
The main advantage of trading using opposite Nasdaq-100 Index and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Index position performs unexpectedly, Gabelli Global 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 Global will offset losses from the drop in Gabelli Global's long position.| Nasdaq-100 Index vs. Simt Real Estate | Nasdaq-100 Index vs. Rreef Property Trust | Nasdaq-100 Index vs. Vy Clarion Real | Nasdaq-100 Index vs. Amg Managers Centersquare |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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