Correlation Between Bancroft Fund and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Bancroft Fund and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman New, you can compare the effects of market volatilities on Bancroft Fund and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancroft Fund and Neuberger Berman.
Diversification Opportunities for Bancroft Fund and Neuberger Berman
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bancroft and Neuberger is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bancroft Fund Limited and Neuberger Berman New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman New has no effect on the direction of Bancroft Fund i.e., Bancroft Fund and Neuberger Berman go up and down completely randomly.
Pair Corralation between Bancroft Fund and Neuberger Berman
Considering the 90-day investment horizon Bancroft Fund Limited is expected to generate 1.52 times more return on investment than Neuberger Berman. However, Bancroft Fund is 1.52 times more volatile than Neuberger Berman New. It trades about 0.03 of its potential returns per unit of risk. Neuberger Berman New is currently generating about -0.01 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 Against |
| Strength | Insignificant |
| Accuracy | 22.67% |
| Values | Daily Returns |
Bancroft Fund Limited vs. Neuberger Berman New
Performance |
| Timeline |
| Bancroft Fund Limited |
| Neuberger Berman New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bancroft Fund and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bancroft Fund and Neuberger Berman
The main advantage of trading using opposite Bancroft Fund and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancroft Fund position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman'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 |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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