Correlation Between Gamco Global and Shenkman Floating
Can any of the company-specific risk be diversified away by investing in both Gamco Global and Shenkman Floating 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 Global and Shenkman Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamco Global Opportunity and Shenkman Floating Rate, you can compare the effects of market volatilities on Gamco Global and Shenkman Floating 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 Global with a short position of Shenkman Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamco Global and Shenkman Floating.
Diversification Opportunities for Gamco Global and Shenkman Floating
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gamco and Shenkman is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gamco Global Opportunity and Shenkman Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenkman Floating Rate and Gamco Global 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 Global Opportunity are associated (or correlated) with Shenkman Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenkman Floating Rate has no effect on the direction of Gamco Global i.e., Gamco Global and Shenkman Floating go up and down completely randomly.
Pair Corralation between Gamco Global and Shenkman Floating
Assuming the 90 days horizon Gamco Global Opportunity is expected to generate 5.58 times more return on investment than Shenkman Floating. However, Gamco Global is 5.58 times more volatile than Shenkman Floating Rate. It trades about 0.16 of its potential returns per unit of risk. Shenkman Floating Rate is currently generating about 0.3 per unit of risk. If you would invest 1,294 in Gamco Global Opportunity on May 7, 2025 and sell it today you would earn a total of 84.00 from holding Gamco Global Opportunity or generate 6.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Gamco Global Opportunity vs. Shenkman Floating Rate
Performance |
Timeline |
Gamco Global Opportunity |
Shenkman Floating Rate |
Gamco Global and Shenkman Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gamco Global and Shenkman Floating
The main advantage of trading using opposite Gamco Global and Shenkman Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamco Global position performs unexpectedly, Shenkman Floating 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 Shenkman Floating will offset losses from the drop in Shenkman Floating's long position.Gamco Global vs. Gabelli Esg Fund | Gamco Global vs. Gabelli Global Financial | Gamco Global vs. The Gabelli Equity | Gamco Global vs. Gamco International Growth |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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