Correlation Between Hartford Municipal and Ab Impact
Can any of the company-specific risk be diversified away by investing in both Hartford Municipal and Ab Impact 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 Hartford Municipal and Ab Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Municipal and Ab Impact Municipal, you can compare the effects of market volatilities on Hartford Municipal and Ab Impact 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 Hartford Municipal with a short position of Ab Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Municipal and Ab Impact.
Diversification Opportunities for Hartford Municipal and Ab Impact
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hartford and ABIMX is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Municipal and Ab Impact Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Impact Municipal and Hartford 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 The Hartford Municipal are associated (or correlated) with Ab Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Impact Municipal has no effect on the direction of Hartford Municipal i.e., Hartford Municipal and Ab Impact go up and down completely randomly.
Pair Corralation between Hartford Municipal and Ab Impact
Assuming the 90 days horizon Hartford Municipal is expected to generate 1.89 times less return on investment than Ab Impact. But when comparing it to its historical volatility, The Hartford Municipal is 1.57 times less risky than Ab Impact. It trades about 0.18 of its potential returns per unit of risk. Ab Impact Municipal is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 982.00 in Ab Impact Municipal on September 1, 2024 and sell it today you would earn a total of 17.00 from holding Ab Impact Municipal or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Hartford Municipal vs. Ab Impact Municipal
Performance |
| Timeline |
| The Hartford Municipal |
| Ab Impact Municipal |
Hartford Municipal and Ab Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Municipal and Ab Impact
The main advantage of trading using opposite Hartford Municipal and Ab Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Municipal position performs unexpectedly, Ab Impact 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 Ab Impact will offset losses from the drop in Ab Impact's long position.| Hartford Municipal vs. Great West Real Estate | Hartford Municipal vs. Deutsche Real Estate | Hartford Municipal vs. Msif Real Estate | Hartford Municipal vs. Simt Real Estate |
| Ab Impact vs. Barings Emerging Markets | Ab Impact vs. Artisan Emerging Markets | Ab Impact vs. Black Oak Emerging | Ab Impact vs. Ashmore Emerging Markets |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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