Correlation Between Gamco Natural and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Gamco Natural and Emerging Markets 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 Emerging Markets 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 Emerging Markets Sustainability, you can compare the effects of market volatilities on Gamco Natural and Emerging Markets 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 Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Natural and Emerging Markets.
Diversification Opportunities for Gamco Natural and Emerging Markets
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gamco and Emerging is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Natural Resources and Emerging Markets Sustainabilit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Sus 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 Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Sus has no effect on the direction of Gamco Natural i.e., Gamco Natural and Emerging Markets go up and down completely randomly.
Pair Corralation between Gamco Natural and Emerging Markets
Assuming the 90 days horizon Gamco Natural Resources is expected to generate 0.97 times more return on investment than Emerging Markets. However, Gamco Natural Resources is 1.03 times less risky than Emerging Markets. It trades about 0.1 of its potential returns per unit of risk. Emerging Markets Sustainability is currently generating about 0.08 per unit of risk. If you would invest 559.00 in Gamco Natural Resources on September 5, 2025 and sell it today you would earn a total of 249.00 from holding Gamco Natural Resources or generate 44.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Gamco Natural Resources vs. Emerging Markets Sustainabilit
Performance |
| Timeline |
| Gamco Natural Resources |
| Emerging Markets Sus |
Gamco Natural and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamco Natural and Emerging Markets
The main advantage of trading using opposite Gamco Natural and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Natural position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Gamco Natural vs. Putnam Global Financials | Gamco Natural vs. Davis Financial Fund | Gamco Natural vs. Mesirow Financial High | Gamco Natural vs. Prudential Financial Services |
| Emerging Markets vs. Intal High Relative | Emerging Markets vs. Dfa International | Emerging Markets vs. Dfa Inflation Protected | Emerging Markets vs. Dfa International Small |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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