Correlation Between Alphacentric Hedged and Gabelli Gold

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

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

Diversification Opportunities for Alphacentric Hedged and Gabelli Gold

0.51

Correlation Coefficient

Alphacentric Hedged  Gabelli Gold

Very weak diversification

The 3 months correlation between Alphacentric and Gabelli is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Alphacentric Hedged Market and Gabelli Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Gold and Alphacentric Hedged 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 Alphacentric Hedged Market are associated (or correlated) with Gabelli Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Gold has no effect on the direction of Alphacentric Hedged i.e., Alphacentric Hedged and Gabelli Gold go up and down completely randomly.

Pair Corralation between Alphacentric Hedged and Gabelli Gold

Assuming the 90 days horizon Alphacentric Hedged Market is expected to generate 0.19 times more return on investment than Gabelli Gold. However, Alphacentric Hedged Market is 5.15 times less risky than Gabelli Gold. It trades about 0.44 of its potential returns per unit of risk. Gabelli Gold Fund is currently generating about 0.07 per unit of risk. If you would invest  2,583  in Alphacentric Hedged Market on May 3, 2025 and sell it today you would earn a total of  301.00  from holding Alphacentric Hedged Market or generate 11.65% return on investment over 90 days.

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

Alphacentric Hedged Market  vs.  Gabelli Gold Fund

Alphacentric Hedged

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Alphacentric Hedged Market are ranked lower than 34 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Alphacentric Hedged may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Gabelli Gold

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gabelli Gold Fund are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Gabelli Gold may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Alphacentric Hedged and Gabelli Gold

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

The idea behind Alphacentric Hedged Market and Gabelli Gold 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.