Correlation Between Gabelli Value and Oakhurst Strategic

Can any of the company-specific risk be diversified away by investing in both Gabelli Value and Oakhurst Strategic 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 Value and Oakhurst Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The Gabelli Value and Oakhurst Strategic Defined, you can compare the effects of market volatilities on Gabelli Value and Oakhurst Strategic 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 Value with a short position of Oakhurst Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Value and Oakhurst Strategic.

Diversification Opportunities for Gabelli Value and Oakhurst Strategic

0.74

Correlation Coefficient

Gabelli Value  Oakhurst Strategic

Poor diversification

The 3 months correlation between Gabelli and Oakhurst is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Value and Oakhurst Strategic Defined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Strategic and Gabelli Value 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 Value are associated (or correlated) with Oakhurst Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Strategic has no effect on the direction of Gabelli Value i.e., Gabelli Value and Oakhurst Strategic go up and down completely randomly.

Pair Corralation between Gabelli Value and Oakhurst Strategic

Assuming the 90 days horizon The Gabelli Value is expected to under-perform the Oakhurst Strategic. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Gabelli Value is 1.18 times less risky than Oakhurst Strategic. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Oakhurst Strategic Defined is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  1,278  in Oakhurst Strategic Defined on September 30, 2024 and sell it today you would lose (95.00) from holding Oakhurst Strategic Defined or give up 7.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

The Gabelli Value  vs.  Oakhurst Strategic Defined

Gabelli Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Gabelli Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Oakhurst Strategic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oakhurst Strategic Defined has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Gabelli Value and Oakhurst Strategic

The main advantage of trading using opposite Gabelli Value and Oakhurst Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Value position performs unexpectedly, Oakhurst Strategic 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 Oakhurst Strategic will offset losses from the drop in Oakhurst Strategic's long position.

The idea behind The Gabelli Value and Oakhurst Strategic Defined pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.