Correlation Between Bancroft Fund and Blackstone
Can any of the company-specific risk be diversified away by investing in both Bancroft Fund and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on Bancroft Fund and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancroft Fund and Blackstone.
Diversification Opportunities for Bancroft Fund and Blackstone
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bancroft and Blackstone is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Bancroft Fund Limited and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Bancroft Fund i.e., Bancroft Fund and Blackstone go up and down completely randomly.
Pair Corralation between Bancroft Fund and Blackstone
Considering the 90-day investment horizon Bancroft Fund is expected to generate 1.75 times less return on investment than Blackstone. But when comparing it to its historical volatility, Bancroft Fund Limited is 2.46 times less risky than Blackstone. It trades about 0.34 of its potential returns per unit of risk. Blackstone Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 14,575 in Blackstone Group on September 12, 2024 and sell it today you would earn a total of 4,382 from holding Blackstone Group or generate 30.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.44% |
Values | Daily Returns |
Bancroft Fund Limited vs. Blackstone Group
Performance |
Timeline |
Bancroft Fund Limited |
Blackstone Group |
Bancroft Fund and Blackstone Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bancroft Fund and Blackstone
The main advantage of trading using opposite Bancroft Fund and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancroft Fund position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone'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 |
Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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