Correlation Between Gabelli Asset and Muhlenkamp Fund
Can any of the company-specific risk be diversified away by investing in both Gabelli Asset and Muhlenkamp Fund 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 Gabelli Asset and Muhlenkamp Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Asset and Muhlenkamp Fund Institutional, you can compare the effects of market volatilities on Gabelli Asset and Muhlenkamp Fund 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 Gabelli Asset with a short position of Muhlenkamp Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Asset and Muhlenkamp Fund.
Diversification Opportunities for Gabelli Asset and Muhlenkamp Fund
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gabelli and Muhlenkamp is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Asset and Muhlenkamp Fund Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muhlenkamp Fund Inst and Gabelli Asset 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 The Gabelli Asset are associated (or correlated) with Muhlenkamp Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muhlenkamp Fund Inst has no effect on the direction of Gabelli Asset i.e., Gabelli Asset and Muhlenkamp Fund go up and down completely randomly.
Pair Corralation between Gabelli Asset and Muhlenkamp Fund
Assuming the 90 days horizon The Gabelli Asset is expected to generate 0.95 times more return on investment than Muhlenkamp Fund. However, The Gabelli Asset is 1.05 times less risky than Muhlenkamp Fund. It trades about -0.02 of its potential returns per unit of risk. Muhlenkamp Fund Institutional is currently generating about -0.06 per unit of risk. If you would invest 5,359 in The Gabelli Asset on September 26, 2024 and sell it today you would lose (55.00) from holding The Gabelli Asset or give up 1.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.44% |
Values | Daily Returns |
The Gabelli Asset vs. Muhlenkamp Fund Institutional
Performance |
Timeline |
Gabelli Asset |
Muhlenkamp Fund Inst |
Gabelli Asset and Muhlenkamp Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gabelli Asset and Muhlenkamp Fund
The main advantage of trading using opposite Gabelli Asset and Muhlenkamp Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Asset position performs unexpectedly, Muhlenkamp Fund 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 Muhlenkamp Fund will offset losses from the drop in Muhlenkamp Fund's long position.Gabelli Asset vs. Nasdaq 100 Fund Investor | Gabelli Asset vs. Meridian Growth Fund | Gabelli Asset vs. The Gabelli Small | Gabelli Asset vs. The Gabelli Growth |
Muhlenkamp Fund vs. Third Avenue Value | Muhlenkamp Fund vs. Meridian Growth Fund | Muhlenkamp Fund vs. Heartland Value Fund | Muhlenkamp Fund vs. Mairs Power Growth |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |