Correlation Between Bancroft Fund and Fiera Capital
Can any of the company-specific risk be diversified away by investing in both Bancroft Fund and Fiera Capital 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 Fiera Capital 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 Fiera Capital, you can compare the effects of market volatilities on Bancroft Fund and Fiera Capital 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 Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancroft Fund and Fiera Capital.
Diversification Opportunities for Bancroft Fund and Fiera Capital
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bancroft and Fiera is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bancroft Fund Limited and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital 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 Fiera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiera Capital has no effect on the direction of Bancroft Fund i.e., Bancroft Fund and Fiera Capital go up and down completely randomly.
Pair Corralation between Bancroft Fund and Fiera Capital
Considering the 90-day investment horizon Bancroft Fund Limited is expected to generate 0.37 times more return on investment than Fiera Capital. However, Bancroft Fund Limited is 2.71 times less risky than Fiera Capital. It trades about 0.57 of its potential returns per unit of risk. Fiera Capital is currently generating about 0.02 per unit of risk. If you would invest 1,659 in Bancroft Fund Limited on August 31, 2024 and sell it today you would earn a total of 188.00 from holding Bancroft Fund Limited or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bancroft Fund Limited vs. Fiera Capital
Performance |
| Timeline |
| Bancroft Fund Limited |
| Fiera Capital |
Bancroft Fund and Fiera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bancroft Fund and Fiera Capital
The main advantage of trading using opposite Bancroft Fund and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancroft Fund position performs unexpectedly, Fiera Capital 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 Fiera Capital will offset losses from the drop in Fiera Capital'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 |
| Fiera Capital vs. AGF Management Limited | Fiera Capital vs. Azimut Holding SpA | Fiera Capital vs. Ameritrans Capital Corp | Fiera Capital vs. Elysee Development Corp |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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