Correlation Between Ancora Microcap and Vela Income
Can any of the company-specific risk be diversified away by investing in both Ancora Microcap and Vela Income 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 Vela Income 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 Vela Income Opportunities, you can compare the effects of market volatilities on Ancora Microcap and Vela Income 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 Vela Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ancora Microcap and Vela Income.
Diversification Opportunities for Ancora Microcap and Vela Income
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ancora and Vela is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ancora Microcap Fund and Vela Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vela Income Opportunities 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 Vela Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vela Income Opportunities has no effect on the direction of Ancora Microcap i.e., Ancora Microcap and Vela Income go up and down completely randomly.
Pair Corralation between Ancora Microcap and Vela Income
Assuming the 90 days horizon Ancora Microcap is expected to generate 1.05 times less return on investment than Vela Income. In addition to that, Ancora Microcap is 2.03 times more volatile than Vela Income Opportunities. It trades about 0.04 of its total potential returns per unit of risk. Vela Income Opportunities is currently generating about 0.09 per unit of volatility. If you would invest 846.00 in Vela Income Opportunities on August 31, 2024 and sell it today you would earn a total of 149.00 from holding Vela Income Opportunities or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ancora Microcap Fund vs. Vela Income Opportunities
Performance |
| Timeline |
| Ancora Microcap |
| Vela Income Opportunities |
Ancora Microcap and Vela Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ancora Microcap and Vela Income
The main advantage of trading using opposite Ancora Microcap and Vela Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ancora Microcap position performs unexpectedly, Vela Income 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 Vela Income will offset losses from the drop in Vela Income'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 |
| Vela Income vs. Global Technology Portfolio | Vela Income vs. Icon Information Technology | Vela Income vs. Hennessy Technology Fund | Vela Income vs. Science Technology Fund |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |