Correlation Between Ab Municipal and Sprott Gold
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Sprott Gold 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 Sprott Gold 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 Sprott Gold Equity, you can compare the effects of market volatilities on Ab Municipal and Sprott Gold 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 Sprott Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Sprott Gold.
Diversification Opportunities for Ab Municipal and Sprott Gold
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUNCX and Sprott is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Sprott Gold Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Gold Equity 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 Sprott Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Gold Equity has no effect on the direction of Ab Municipal i.e., Ab Municipal and Sprott Gold go up and down completely randomly.
Pair Corralation between Ab Municipal and Sprott Gold
Assuming the 90 days horizon Ab Municipal Bond is expected to under-perform the Sprott Gold. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ab Municipal Bond is 31.23 times less risky than Sprott Gold. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Sprott Gold Equity is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 10,441 in Sprott Gold Equity on September 3, 2025 and sell it today you would earn a total of 1,130 from holding Sprott Gold Equity or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Sprott Gold Equity
Performance |
| Timeline |
| Ab Municipal Bond |
| Sprott Gold Equity |
Ab Municipal and Sprott Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Sprott Gold
The main advantage of trading using opposite Ab Municipal and Sprott Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Sprott Gold 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 Sprott Gold will offset losses from the drop in Sprott Gold'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 |
| Sprott Gold vs. Aqr Risk Parity | Sprott Gold vs. Intal High Relative | Sprott Gold vs. Blackrock High Income | Sprott Gold vs. Ab High Income |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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