Correlation Between Bancroft Fund and GAMCO Global
Can any of the company-specific risk be diversified away by investing in both Bancroft Fund and GAMCO Global 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 Bancroft Fund and GAMCO Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bancroft Fund and GAMCO Global Gold, you can compare the effects of market volatilities on Bancroft Fund and GAMCO Global 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 Bancroft Fund with a short position of GAMCO Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancroft Fund and GAMCO Global.
Diversification Opportunities for Bancroft Fund and GAMCO Global
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bancroft and GAMCO is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bancroft Fund and GAMCO Global Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMCO Global Gold and Bancroft Fund 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 Bancroft Fund are associated (or correlated) with GAMCO Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMCO Global Gold has no effect on the direction of Bancroft Fund i.e., Bancroft Fund and GAMCO Global go up and down completely randomly.
Pair Corralation between Bancroft Fund and GAMCO Global
Assuming the 90 days trading horizon Bancroft Fund is expected to under-perform the GAMCO Global. But the preferred stock apears to be less risky and, when comparing its historical volatility, Bancroft Fund is 1.26 times less risky than GAMCO Global. The preferred stock trades about -0.04 of its potential returns per unit of risk. The GAMCO Global Gold is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,195 in GAMCO Global Gold on September 2, 2024 and sell it today you would earn a total of 3.00 from holding GAMCO Global Gold or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bancroft Fund vs. GAMCO Global Gold
Performance |
| Timeline |
| Bancroft Fund |
| GAMCO Global Gold |
Bancroft Fund and GAMCO Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bancroft Fund and GAMCO Global
The main advantage of trading using opposite Bancroft Fund and GAMCO Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancroft Fund position performs unexpectedly, GAMCO Global 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 GAMCO Global will offset losses from the drop in GAMCO Global's long position.| Bancroft Fund vs. Ellsworth Growth and | Bancroft Fund vs. The Gabelli Equity | Bancroft Fund vs. The Gabelli Utility | Bancroft Fund vs. GAMCO Global Gold |
| GAMCO Global vs. The Gabelli Equity | GAMCO Global vs. The Gabelli Equity | GAMCO Global vs. The Gabelli Utility | GAMCO Global vs. Bancroft Fund |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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