Correlation Between Ab Municipal and Nationwide Inflation
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Nationwide 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 Municipal and Nationwide Inflation 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 Nationwide Inflation Protected Securities, you can compare the effects of market volatilities on Ab Municipal and Nationwide 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 Municipal with a short position of Nationwide Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Nationwide Inflation.
Diversification Opportunities for Ab Municipal and Nationwide Inflation
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AUNCX and Nationwide is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Nationwide Inflation Protected in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Inflation 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 Nationwide Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Inflation has no effect on the direction of Ab Municipal i.e., Ab Municipal and Nationwide Inflation go up and down completely randomly.
Pair Corralation between Ab Municipal and Nationwide Inflation
Assuming the 90 days horizon Ab Municipal Bond is expected to generate 0.62 times more return on investment than Nationwide Inflation. However, Ab Municipal Bond is 1.61 times less risky than Nationwide Inflation. It trades about 0.25 of its potential returns per unit of risk. Nationwide Inflation Protected Securities is currently generating about 0.07 per unit of risk. If you would invest 1,070 in Ab Municipal Bond on September 2, 2025 and sell it today you would earn a total of 18.00 from holding Ab Municipal Bond or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Ab Municipal Bond vs. Nationwide Inflation Protected
Performance |
| Timeline |
| Ab Municipal Bond |
| Nationwide Inflation |
Ab Municipal and Nationwide Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Nationwide Inflation
The main advantage of trading using opposite Ab Municipal and Nationwide Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Nationwide 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 Nationwide Inflation will offset losses from the drop in Nationwide Inflation's long position.| Ab Municipal vs. Siit Large Cap | Ab Municipal vs. Qs Large Cap | Ab Municipal vs. American Century Etf | Ab Municipal vs. Qs Large Cap |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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