Correlation Between Gamco Natural and Horizon Active
Can any of the company-specific risk be diversified away by investing in both Gamco Natural and Horizon Active 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 Gamco Natural and Horizon Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Natural Resources and Horizon Active Asset, you can compare the effects of market volatilities on Gamco Natural and Horizon Active 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 Gamco Natural with a short position of Horizon Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Natural and Horizon Active.
Diversification Opportunities for Gamco Natural and Horizon Active
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gamco and Horizon is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Natural Resources and Horizon Active Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Active Asset and Gamco Natural 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 Gamco Natural Resources are associated (or correlated) with Horizon Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Active Asset has no effect on the direction of Gamco Natural i.e., Gamco Natural and Horizon Active go up and down completely randomly.
Pair Corralation between Gamco Natural and Horizon Active
Assuming the 90 days horizon Gamco Natural Resources is expected to generate 1.09 times more return on investment than Horizon Active. However, Gamco Natural is 1.09 times more volatile than Horizon Active Asset. It trades about 0.13 of its potential returns per unit of risk. Horizon Active Asset is currently generating about 0.08 per unit of risk. If you would invest 765.00 in Gamco Natural Resources on September 13, 2025 and sell it today you would earn a total of 52.00 from holding Gamco Natural Resources or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamco Natural Resources vs. Horizon Active Asset
Performance |
| Timeline |
| Gamco Natural Resources |
| Horizon Active Asset |
Gamco Natural and Horizon Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Natural and Horizon Active
The main advantage of trading using opposite Gamco Natural and Horizon Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Natural position performs unexpectedly, Horizon Active 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 Horizon Active will offset losses from the drop in Horizon Active's long position.| Gamco Natural vs. William Blair Small | Gamco Natural vs. Lsv Small Cap | Gamco Natural vs. Small Cap Value Profund | Gamco Natural vs. Northern Small Cap |
| Horizon Active vs. Oil Gas Ultrasector | Horizon Active vs. Invesco Energy Fund | Horizon Active vs. Jennison Natural Resources | Horizon Active vs. Gamco Natural Resources |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |