Correlation Between Bancroft Fund and Gabelli Global
Can any of the company-specific risk be diversified away by investing in both Bancroft Fund and Gabelli 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 Gabelli Global 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 Gabelli Global Small, you can compare the effects of market volatilities on Bancroft Fund and Gabelli 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 Gabelli Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancroft Fund and Gabelli Global.
Diversification Opportunities for Bancroft Fund and Gabelli Global
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bancroft and Gabelli is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bancroft Fund Limited and Gabelli Global Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Global Small 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 Gabelli Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Global Small has no effect on the direction of Bancroft Fund i.e., Bancroft Fund and Gabelli Global go up and down completely randomly.
Pair Corralation between Bancroft Fund and Gabelli Global
Considering the 90-day investment horizon Bancroft Fund Limited is expected to generate 1.11 times more return on investment than Gabelli Global. However, Bancroft Fund is 1.11 times more volatile than Gabelli Global Small. It trades about 0.03 of its potential returns per unit of risk. Gabelli Global Small is currently generating about 0.02 per unit of risk. If you would invest 1,598 in Bancroft Fund Limited on November 2, 2024 and sell it today you would earn a total of 234.00 from holding Bancroft Fund Limited or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bancroft Fund Limited vs. Gabelli Global Small
Performance |
| Timeline |
| Bancroft Fund Limited |
| Gabelli Global Small |
Bancroft Fund and Gabelli Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bancroft Fund and Gabelli Global
The main advantage of trading using opposite Bancroft Fund and Gabelli Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancroft Fund position performs unexpectedly, Gabelli 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 Gabelli Global will offset losses from the drop in Gabelli Global'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 |
| Gabelli Global vs. MFS Investment Grade | Gabelli Global vs. Eaton Vance National | Gabelli Global vs. Nuveen California Select | Gabelli Global vs. Federated Premier Municipal |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |