Correlation Between Gabelli Dividend and Bancroft Fund
Can any of the company-specific risk be diversified away by investing in both Gabelli Dividend 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 Gabelli Dividend and Bancroft Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Dividend and Bancroft Fund, you can compare the effects of market volatilities on Gabelli Dividend 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 Gabelli Dividend with a short position of Bancroft Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Dividend and Bancroft Fund.
Diversification Opportunities for Gabelli Dividend and Bancroft Fund
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gabelli and Bancroft is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Dividend and Bancroft Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancroft Fund and Gabelli Dividend 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 The Gabelli Dividend 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 has no effect on the direction of Gabelli Dividend i.e., Gabelli Dividend and Bancroft Fund go up and down completely randomly.
Pair Corralation between Gabelli Dividend and Bancroft Fund
Assuming the 90 days trading horizon The Gabelli Dividend is expected to generate 0.48 times more return on investment than Bancroft Fund. However, The Gabelli Dividend is 2.07 times less risky than Bancroft Fund. It trades about -0.14 of its potential returns per unit of risk. Bancroft Fund is currently generating about -0.09 per unit of risk. If you would invest 2,472 in The Gabelli Dividend on September 5, 2024 and sell it today you would lose (13.00) from holding The Gabelli Dividend or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Gabelli Dividend vs. Bancroft Fund
Performance |
| Timeline |
| Gabelli Dividend |
| Bancroft Fund |
Gabelli Dividend and Bancroft Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Dividend and Bancroft Fund
The main advantage of trading using opposite Gabelli Dividend and Bancroft Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Dividend 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.| Gabelli Dividend vs. GAMCO Global Gold | Gabelli Dividend vs. The Gabelli Utility | Gabelli Dividend vs. Bancroft Fund | Gabelli Dividend vs. Ellsworth Growth and |
| Bancroft Fund vs. Ellsworth Growth and | Bancroft Fund vs. The Gabelli Equity | Bancroft Fund vs. The Gabelli Utility | Bancroft Fund vs. GAMCO Global Gold |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |