Correlation Between Brandywineglobal and Bancroft Fund
Can any of the company-specific risk be diversified away by investing in both Brandywineglobal and Bancroft Fund 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 Brandywineglobal and Bancroft Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brandywineglobal Globalome Opportunities and Bancroft Fund Limited, you can compare the effects of market volatilities on Brandywineglobal and Bancroft Fund 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 Brandywineglobal with a short position of Bancroft Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brandywineglobal and Bancroft Fund.
Diversification Opportunities for Brandywineglobal and Bancroft Fund
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brandywineglobal and Bancroft is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Brandywineglobal Globalome Opp and Bancroft Fund Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancroft Fund Limited and Brandywineglobal 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 Brandywineglobal Globalome Opportunities are associated (or correlated) with Bancroft Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancroft Fund Limited has no effect on the direction of Brandywineglobal i.e., Brandywineglobal and Bancroft Fund go up and down completely randomly.
Pair Corralation between Brandywineglobal and Bancroft Fund
Considering the 90-day investment horizon Brandywineglobal Globalome Opportunities is expected to under-perform the Bancroft Fund. But the fund apears to be less risky and, when comparing its historical volatility, Brandywineglobal Globalome Opportunities is 1.13 times less risky than Bancroft Fund. The fund trades about -0.05 of its potential returns per unit of risk. The Bancroft Fund Limited is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,680 in Bancroft Fund Limited on August 25, 2024 and sell it today you would earn a total of 133.00 from holding Bancroft Fund Limited or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brandywineglobal Globalome Opp vs. Bancroft Fund Limited
Performance |
| Timeline |
| Brandywineglobal Glo |
| Bancroft Fund Limited |
Brandywineglobal and Bancroft Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brandywineglobal and Bancroft Fund
The main advantage of trading using opposite Brandywineglobal and Bancroft Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brandywineglobal position performs unexpectedly, Bancroft Fund 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 Bancroft Fund will offset losses from the drop in Bancroft Fund's long position.| Brandywineglobal vs. Virtus Global Multi | Brandywineglobal vs. RiverNorth Specialty Finance | Brandywineglobal vs. Western Asset Mortgage | Brandywineglobal vs. Millerhoward High Income |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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