Correlation Between Gabelli Utilities and Selected International

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

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

Diversification Opportunities for Gabelli Utilities and Selected International

0.83

Correlation Coefficient

Gabelli Utilities  Selected International

Very poor diversification

The 3 months correlation between Gabelli and Selected is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Utilities and Selected International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selected International and Gabelli Utilities 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 Utilities are associated (or correlated) with Selected International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selected International has no effect on the direction of Gabelli Utilities i.e., Gabelli Utilities and Selected International go up and down completely randomly.

Pair Corralation between Gabelli Utilities and Selected International

Assuming the 90 days horizon Gabelli Utilities is expected to generate 2.15 times less return on investment than Selected International. But when comparing it to its historical volatility, The Gabelli Utilities is 1.27 times less risky than Selected International. It trades about 0.07 of its potential returns per unit of risk. Selected International Fund is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,262  in Selected International Fund on May 3, 2025 and sell it today you would earn a total of  96.00  from holding Selected International Fund or generate 7.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.39%
Values	Daily Returns

The Gabelli Utilities  vs.  Selected International Fund

Gabelli Utilities

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in The Gabelli Utilities are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Gabelli Utilities is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Selected International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Selected International Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Selected International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Gabelli Utilities and Selected International

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

The idea behind The Gabelli Utilities and Selected International Fund 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.