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

0.0

Correlation Coefficient

Bancroft Fund  Neuberger Berman

Pay attention - limited upside

The 3 months correlation between Bancroft and Neuberger is 0.0. 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

If you would invest (100.00) in Neuberger Berman New on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Neuberger Berman New or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bancroft Fund Limited  vs.  Neuberger Berman New

Bancroft Fund Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bancroft Fund Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Bancroft Fund is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Neuberger Berman New

Risk-Adjusted Performance

Very Weak

Over the last 90 days Neuberger Berman New has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Neuberger Berman is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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.

The idea behind Bancroft Fund Limited and Neuberger Berman New pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.