Correlation Between Clifford Capital and Bancroft Fund
Can any of the company-specific risk be diversified away by investing in both Clifford Capital 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 Clifford Capital and Bancroft Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clifford Capital Partners and Bancroft Fund Limited, you can compare the effects of market volatilities on Clifford Capital 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 Clifford Capital with a short position of Bancroft Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clifford Capital and Bancroft Fund.
Diversification Opportunities for Clifford Capital and Bancroft Fund
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Clifford and Bancroft is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Clifford Capital Partners 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 Clifford Capital 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 Clifford Capital Partners 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 Clifford Capital i.e., Clifford Capital and Bancroft Fund go up and down completely randomly.
Pair Corralation between Clifford Capital and Bancroft Fund
Assuming the 90 days horizon Clifford Capital is expected to generate 4.14 times less return on investment than Bancroft Fund. But when comparing it to its historical volatility, Clifford Capital Partners is 1.22 times less risky than Bancroft Fund. It trades about 0.08 of its potential returns per unit of risk. Bancroft Fund Limited is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,990 in Bancroft Fund Limited on August 15, 2025 and sell it today you would earn a total of 367.00 from holding Bancroft Fund Limited or generate 18.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clifford Capital Partners vs. Bancroft Fund Limited
Performance |
| Timeline |
| Clifford Capital Partners |
| Bancroft Fund Limited |
Clifford Capital and Bancroft Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clifford Capital and Bancroft Fund
The main advantage of trading using opposite Clifford Capital and Bancroft Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clifford Capital 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.| Clifford Capital vs. Clifford Capital Partners | Clifford Capital vs. Neuberger Berman Mid | Clifford Capital vs. Saat Market Growth | Clifford Capital vs. American Century Investments |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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