Correlation Between Bancroft Fund and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Bancroft Fund and Eaton Vance 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 Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bancroft Fund Limited and Eaton Vance New, you can compare the effects of market volatilities on Bancroft Fund and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancroft Fund and Eaton Vance.
Diversification Opportunities for Bancroft Fund and Eaton Vance
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bancroft and Eaton is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bancroft Fund Limited and Eaton Vance New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance New 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 Limited are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance New has no effect on the direction of Bancroft Fund i.e., Bancroft Fund and Eaton Vance go up and down completely randomly.
Pair Corralation between Bancroft Fund and Eaton Vance
Considering the 90-day investment horizon Bancroft Fund Limited is expected to generate 1.4 times more return on investment than Eaton Vance. However, Bancroft Fund is 1.4 times more volatile than Eaton Vance New. It trades about 0.04 of its potential returns per unit of risk. Eaton Vance New is currently generating about 0.04 per unit of risk. If you would invest 1,470 in Bancroft Fund Limited on September 2, 2024 and sell it today you would earn a total of 377.00 from holding Bancroft Fund Limited or generate 25.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bancroft Fund Limited vs. Eaton Vance New
Performance |
| Timeline |
| Bancroft Fund Limited |
| Eaton Vance New |
Bancroft Fund and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bancroft Fund and Eaton Vance
The main advantage of trading using opposite Bancroft Fund and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancroft Fund position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Bancroft Fund vs. GAMCO Natural Resources | Bancroft Fund vs. RiverNorth Flexible Municipalome | Bancroft Fund vs. Brandywineglobal Globalome Opportunities | Bancroft Fund vs. Ameritrans Capital Corp |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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