Correlation Between Ab Municipal and Hartford Municipal
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Hartford 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 Municipal and Hartford Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Municipal Bond and Hartford Municipal Income, you can compare the effects of market volatilities on Ab Municipal and Hartford 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 Municipal with a short position of Hartford Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Hartford Municipal.
Diversification Opportunities for Ab Municipal and Hartford Municipal
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUNCX and Hartford is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Hartford Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Municipal Income and Ab Municipal 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 Municipal Bond are associated (or correlated) with Hartford Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Municipal Income has no effect on the direction of Ab Municipal i.e., Ab Municipal and Hartford Municipal go up and down completely randomly.
Pair Corralation between Ab Municipal and Hartford Municipal
Assuming the 90 days horizon Ab Municipal Bond is expected to generate 0.66 times more return on investment than Hartford Municipal. However, Ab Municipal Bond is 1.5 times less risky than Hartford Municipal. It trades about 0.27 of its potential returns per unit of risk. Hartford Municipal Income is currently generating about 0.03 per unit of risk. If you would invest 1,069 in Ab Municipal Bond on November 3, 2024 and sell it today you would earn a total of 7.00 from holding Ab Municipal Bond or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ab Municipal Bond vs. Hartford Municipal Income
Performance |
| Timeline |
| Ab Municipal Bond |
| Hartford Municipal Income |
Ab Municipal and Hartford Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Hartford Municipal
The main advantage of trading using opposite Ab Municipal and Hartford Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Hartford 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 Hartford Municipal will offset losses from the drop in Hartford Municipal's long position.| Ab Municipal vs. Goldman Sachs Technology | Ab Municipal vs. Specialized Technology Fund | Ab Municipal vs. Invesco Technology Fund | Ab Municipal vs. Columbia Global Technology |
| Hartford Municipal vs. Blrc Sgy Mnp | Hartford Municipal vs. T Rowe Price | Hartford Municipal vs. Rationalpier 88 Convertible | Hartford Municipal vs. Bbh Intermediate Municipal |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |