ERC vs FTF: Correlation
How closely do Allspring Multi-Sector Income Fund (ERC) and Franklin Limited Duration Income Trust (FTF) trade together? Their weekly returns over three years give a correlation of 0.73, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ERC and FTF?
Across a 3-year window, the weekly returns of ERC and FTF correlate at 0.73, strong. Recent behaviour matches the longer record: 0.72 over 1 year against 0.73 over 3. Stretching to 5 years gives 0.73, with an annualized covariance of 67.8 %².
Within ERC's tracked universe of 22 assets, FTF comes in at #10 by 3-year correlation. On 12-month performance ERC holds a 5.2-point edge, +6.7% against +1.5%.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ERC vs FTF: side by side
| ERC (Allspring Multi-Sector Income Fund) | FTF (Franklin Limited Duration Income Trust) | |
|---|---|---|
| 1-year return | +6.7% | +1.5% |
| 5-year return | +11.4% | +10.3% |
| Volatility (ann.) | 10.1% | 9.2% |
| Beta vs S&P 500 | 0.41 | 0.34 |
| Max drawdown (3Y) | -9.8% | -11.6% |
| Market cap | $0.3B | – |
| P/E (trailing) | 9.7 | 13.7 |
| Dividend yield | 9.33% | 12.75% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | ERC | FTF |
|---|---|---|
| 2022 | -17.8% | -23.5% |
| 2023 | +4.9% | +12.2% |
| 2024 | +6.1% | +19.6% |
| 2025 | +11.1% | +4.3% |
| 2026 | +5.8% | +1.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ERC and FTF good diversifiers for each other?
Only partially. A correlation of 0.73 means ERC and FTF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between ERC and FTF?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.72 over the last year and 0.73 over 5 years.
Is FTF a good diversifier for ERC?
Only partially. A correlation of 0.73 means ERC and FTF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
On the −1 to +1 scale, 0.73 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/erc-vs-ftf.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/erc-vs-ftf/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: ERC correlations · FTF correlations
