Correlation Between Vanguard Extended and Gabelli Gold
Can any of the company-specific risk be diversified away by investing in both Vanguard Extended 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 Vanguard Extended and Gabelli Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Extended Market and Gabelli Gold Fund, you can compare the effects of market volatilities on Vanguard Extended 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 Vanguard Extended with a short position of Gabelli Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Extended and Gabelli Gold.
Diversification Opportunities for Vanguard Extended and Gabelli Gold
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and Gabelli is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Extended Market and Gabelli Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Gold and Vanguard Extended 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 Vanguard Extended Market 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 Vanguard Extended i.e., Vanguard Extended and Gabelli Gold go up and down completely randomly.
Pair Corralation between Vanguard Extended and Gabelli Gold
Assuming the 90 days horizon Vanguard Extended is expected to generate 1.26 times less return on investment than Gabelli Gold. But when comparing it to its historical volatility, Vanguard Extended Market is 1.71 times less risky than Gabelli Gold. It trades about 0.2 of its potential returns per unit of risk. Gabelli Gold Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,302 in Gabelli Gold Fund on June 2, 2025 and sell it today you would earn a total of 503.00 from holding Gabelli Gold Fund or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Extended Market vs. Gabelli Gold Fund
Performance |
| Timeline |
| Vanguard Extended Market |
| Gabelli Gold |
Vanguard Extended and Gabelli Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Extended and Gabelli Gold
The main advantage of trading using opposite Vanguard Extended and Gabelli Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Extended 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.| Vanguard Extended vs. Fidelity Money Market | Vanguard Extended vs. Prudential Government Money | Vanguard Extended vs. Franklin Government Money | Vanguard Extended vs. Edward Jones Money |
| Gabelli Gold vs. Gabelli Gold Fund | Gabelli Gold vs. Gabelli Gold Fund | Gabelli Gold vs. Franklin Gold Precious | Gabelli Gold vs. First Eagle Gold |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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