Correlation Between Franklin Natural and Ancora Income
Can any of the company-specific risk be diversified away by investing in both Franklin Natural and Ancora 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 Franklin Natural and Ancora Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Natural Resources and Ancora Income Fund, you can compare the effects of market volatilities on Franklin Natural and Ancora 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 Franklin Natural with a short position of Ancora Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Natural and Ancora Income.
Diversification Opportunities for Franklin Natural and Ancora Income
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Franklin and Ancora is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Natural Resources and Ancora Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ancora Income and Franklin Natural 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 Franklin Natural Resources are associated (or correlated) with Ancora Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ancora Income has no effect on the direction of Franklin Natural i.e., Franklin Natural and Ancora Income go up and down completely randomly.
Pair Corralation between Franklin Natural and Ancora Income
Assuming the 90 days horizon Franklin Natural is expected to generate 1.89 times less return on investment than Ancora Income. In addition to that, Franklin Natural is 3.16 times more volatile than Ancora Income Fund. It trades about 0.02 of its total potential returns per unit of risk. Ancora Income Fund is currently generating about 0.14 per unit of volatility. If you would invest 628.00 in Ancora Income Fund on September 12, 2024 and sell it today you would earn a total of 109.00 from holding Ancora Income Fund or generate 17.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Natural Resources vs. Ancora Income Fund
Performance |
| Timeline |
| Franklin Natural Res |
| Ancora Income |
Franklin Natural and Ancora Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Natural and Ancora Income
The main advantage of trading using opposite Franklin Natural and Ancora Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Natural position performs unexpectedly, Ancora 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 Ancora Income will offset losses from the drop in Ancora Income's long position.| Franklin Natural vs. Victory Rs Partners | Franklin Natural vs. Queens Road Small | Franklin Natural vs. Royce Opportunity Fund | Franklin Natural vs. Pace Smallmedium Value |
| Ancora Income vs. Jennison Natural Resources | Ancora Income vs. Clearbridge Energy Mlp | Ancora Income vs. Franklin Natural Resources | Ancora Income vs. Goehring Rozencwajg Resources |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |