Correlation Between Ab Bond and Lincoln Inflation
Can any of the company-specific risk be diversified away by investing in both Ab Bond and Lincoln Inflation 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 Bond and Lincoln Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Bond Inflation and Lincoln Inflation Plus, you can compare the effects of market volatilities on Ab Bond and Lincoln Inflation 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 Bond with a short position of Lincoln Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Bond and Lincoln Inflation.
Diversification Opportunities for Ab Bond and Lincoln Inflation
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between ABNYX and Lincoln is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ab Bond Inflation and Lincoln Inflation Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln Inflation Plus and Ab Bond 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 Bond Inflation are associated (or correlated) with Lincoln Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln Inflation Plus has no effect on the direction of Ab Bond i.e., Ab Bond and Lincoln Inflation go up and down completely randomly.
Pair Corralation between Ab Bond and Lincoln Inflation
Assuming the 90 days horizon Ab Bond is expected to generate 17.63 times less return on investment than Lincoln Inflation. But when comparing it to its historical volatility, Ab Bond Inflation is 5.17 times less risky than Lincoln Inflation. It trades about 0.02 of its potential returns per unit of risk. Lincoln Inflation Plus is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,049 in Lincoln Inflation Plus on October 6, 2025 and sell it today you would earn a total of 18.00 from holding Lincoln Inflation Plus or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Bond Inflation vs. Lincoln Inflation Plus
Performance |
| Timeline |
| Ab Bond Inflation |
| Lincoln Inflation Plus |
Ab Bond and Lincoln Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Bond and Lincoln Inflation
The main advantage of trading using opposite Ab Bond and Lincoln Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Bond position performs unexpectedly, Lincoln Inflation 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 Lincoln Inflation will offset losses from the drop in Lincoln Inflation's long position.| Ab Bond vs. Ab Small Cap | Ab Bond vs. United Kingdom Small | Ab Bond vs. Ab Small Cap | Ab Bond vs. Nt International Small Mid |
| Lincoln Inflation vs. Fidelity Money Market | Lincoln Inflation vs. Profunds Money | Lincoln Inflation vs. Cref Money Market | Lincoln Inflation vs. Ab Government Exchange |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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