Correlation Between Ab Municipal and Quantified Managed
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Quantified Managed 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 Quantified Managed 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 Quantified Managed Income, you can compare the effects of market volatilities on Ab Municipal and Quantified Managed 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 Quantified Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Quantified Managed.
Diversification Opportunities for Ab Municipal and Quantified Managed
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AUNTX and Quantified is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Quantified Managed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantified Managed 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 Quantified Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantified Managed Income has no effect on the direction of Ab Municipal i.e., Ab Municipal and Quantified Managed go up and down completely randomly.
Pair Corralation between Ab Municipal and Quantified Managed
Assuming the 90 days horizon Ab Municipal is expected to generate 1.72 times less return on investment than Quantified Managed. But when comparing it to its historical volatility, Ab Municipal Bond is 1.62 times less risky than Quantified Managed. It trades about 0.3 of its potential returns per unit of risk. Quantified Managed Income is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 806.00 in Quantified Managed Income on November 2, 2024 and sell it today you would earn a total of 11.00 from holding Quantified Managed Income or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Quantified Managed Income
Performance |
| Timeline |
| Ab Municipal Bond |
| Quantified Managed Income |
Ab Municipal and Quantified Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Quantified Managed
The main advantage of trading using opposite Ab Municipal and Quantified Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Quantified Managed 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 Quantified Managed will offset losses from the drop in Quantified Managed's long position.| Ab Municipal vs. Virtus Seix Government | Ab Municipal vs. Aig Government Money | Ab Municipal vs. Inverse Government Long | Ab Municipal vs. Ab Municipal Bond |
| Quantified Managed vs. Morningstar Defensive Bond | Quantified Managed vs. Blrc Sgy Mnp | Quantified Managed vs. Doubleline Total Return | Quantified Managed vs. Barings High Yield |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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