Correlation Between Ab Impact and Nebraska Municipal
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Nebraska Municipal 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 Ab Impact and Nebraska Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Nebraska Municipal Fund, you can compare the effects of market volatilities on Ab Impact and Nebraska Municipal 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 Ab Impact with a short position of Nebraska Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Nebraska Municipal.
Diversification Opportunities for Ab Impact and Nebraska Municipal
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ABIMX and Nebraska is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Nebraska Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nebraska Municipal and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Nebraska Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nebraska Municipal has no effect on the direction of Ab Impact i.e., Ab Impact and Nebraska Municipal go up and down completely randomly.
Pair Corralation between Ab Impact and Nebraska Municipal
Assuming the 90 days horizon Ab Impact Municipal is expected to under-perform the Nebraska Municipal. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Impact Municipal is 1.2 times less risky than Nebraska Municipal. The mutual fund trades about -0.17 of its potential returns per unit of risk. The Nebraska Municipal Fund is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 908.00 in Nebraska Municipal Fund on January 13, 2025 and sell it today you would lose (25.00) from holding Nebraska Municipal Fund or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. Nebraska Municipal Fund
Performance |
| Timeline |
| Ab Impact Municipal |
| Nebraska Municipal |
Ab Impact and Nebraska Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Nebraska Municipal
The main advantage of trading using opposite Ab Impact and Nebraska Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Nebraska Municipal 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 Nebraska Municipal will offset losses from the drop in Nebraska Municipal's long position.| Ab Impact vs. Guidemark Large Cap | Ab Impact vs. Tiaa Cref Large Cap Value | Ab Impact vs. Cb Large Cap | Ab Impact vs. Pace Large Value |
| Nebraska Municipal vs. Viking Tax Free Fund | Nebraska Municipal vs. Viking Tax Free Fund | Nebraska Municipal vs. Viking Tax Free Fund | Nebraska Municipal vs. Integrity Dividend Summit |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |