Correlation Between California Municipal and Gabelli Money

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

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

Diversification Opportunities for California Municipal and Gabelli Money

0.0

Correlation Coefficient

California Municipal  Gabelli Money

Pay attention - limited upside

The 3 months correlation between California and Gabelli is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding California Municipal Portfolio and The Gabelli Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Money and California Municipal 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 California Municipal Portfolio are associated (or correlated) with Gabelli Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Money has no effect on the direction of California Municipal i.e., California Municipal and Gabelli Money go up and down completely randomly.

Pair Corralation between California Municipal and Gabelli Money

If you would invest  1,359  in California Municipal Portfolio on May 6, 2025 and sell it today you would earn a total of  16.00  from holding California Municipal Portfolio or generate 1.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.38%
Values	Daily Returns

California Municipal Portfolio  vs.  The Gabelli Money

California Municipal

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in California Municipal Portfolio are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, California Municipal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gabelli Money

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Gabelli Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Gabelli Money is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with California Municipal and Gabelli Money

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

The idea behind California Municipal Portfolio and The Gabelli Money 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.