Correlation Between Ancora Microcap and Ancorathelen Small
Can any of the company-specific risk be diversified away by investing in both Ancora Microcap and Ancorathelen Small 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 Ancora Microcap and Ancorathelen Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ancora Microcap Fund and Ancorathelen Small Mid Cap, you can compare the effects of market volatilities on Ancora Microcap and Ancorathelen Small 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 Ancora Microcap with a short position of Ancorathelen Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ancora Microcap and Ancorathelen Small.
Diversification Opportunities for Ancora Microcap and Ancorathelen Small
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ancora and Ancorathelen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ancora Microcap Fund and Ancorathelen Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ancorathelen Small Mid and Ancora Microcap 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 Ancora Microcap Fund are associated (or correlated) with Ancorathelen Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ancorathelen Small Mid has no effect on the direction of Ancora Microcap i.e., Ancora Microcap and Ancorathelen Small go up and down completely randomly.
Pair Corralation between Ancora Microcap and Ancorathelen Small
Assuming the 90 days horizon Ancora Microcap is expected to generate 1.3 times less return on investment than Ancorathelen Small. But when comparing it to its historical volatility, Ancora Microcap Fund is 1.09 times less risky than Ancorathelen Small. It trades about 0.32 of its potential returns per unit of risk. Ancorathelen Small Mid Cap is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 1,990 in Ancorathelen Small Mid Cap on August 31, 2024 and sell it today you would earn a total of 211.00 from holding Ancorathelen Small Mid Cap or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ancora Microcap Fund vs. Ancorathelen Small Mid Cap
Performance |
| Timeline |
| Ancora Microcap |
| Ancorathelen Small Mid |
Ancora Microcap and Ancorathelen Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ancora Microcap and Ancorathelen Small
The main advantage of trading using opposite Ancora Microcap and Ancorathelen Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ancora Microcap position performs unexpectedly, Ancorathelen Small 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 Ancorathelen Small will offset losses from the drop in Ancorathelen Small's long position.| Ancora Microcap vs. Hennessy Technology Fund | Ancora Microcap vs. Blackrock Science Technology | Ancora Microcap vs. Janus Global Technology | Ancora Microcap vs. Pgim Jennison Technology |
| Ancorathelen Small vs. Jhancock Diversified Macro | Ancorathelen Small vs. Fidelity Advisor Diversified | Ancorathelen Small vs. Blackrock Sm Cap | Ancorathelen Small vs. Delaware Limited Term Diversified |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |