Correlation Between Carlyle and Bancroft Fund
Can any of the company-specific risk be diversified away by investing in both Carlyle 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 Carlyle and Bancroft Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlyle Group and Bancroft Fund Limited, you can compare the effects of market volatilities on Carlyle 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 Carlyle with a short position of Bancroft Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Bancroft Fund.
Diversification Opportunities for Carlyle and Bancroft Fund
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Carlyle and Bancroft is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group 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 Carlyle 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 Carlyle Group 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 Carlyle i.e., Carlyle and Bancroft Fund go up and down completely randomly.
Pair Corralation between Carlyle and Bancroft Fund
Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 2.98 times more return on investment than Bancroft Fund. However, Carlyle is 2.98 times more volatile than Bancroft Fund Limited. It trades about 0.22 of its potential returns per unit of risk. Bancroft Fund Limited is currently generating about 0.26 per unit of risk. If you would invest 3,953 in Carlyle Group on August 25, 2024 and sell it today you would earn a total of 1,326 from holding Carlyle Group or generate 33.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Carlyle Group vs. Bancroft Fund Limited
Performance |
| Timeline |
| Carlyle Group |
| Bancroft Fund Limited |
Carlyle and Bancroft Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlyle and Bancroft Fund
The main advantage of trading using opposite Carlyle and Bancroft Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle 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.| Carlyle vs. PowerUp Acquisition Corp | Carlyle vs. Aurora Innovation | Carlyle vs. HUMANA INC | Carlyle vs. Aquagold International |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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