Correlation Between Ab Municipal and Abrdn Short
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Abrdn Short 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 Abrdn Short 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 Abrdn Short Duration, you can compare the effects of market volatilities on Ab Municipal and Abrdn Short 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 Abrdn Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Abrdn Short.
Diversification Opportunities for Ab Municipal and Abrdn Short
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AUNTX and Abrdn is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Abrdn Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Short Duration 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 Abrdn Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Short Duration has no effect on the direction of Ab Municipal i.e., Ab Municipal and Abrdn Short go up and down completely randomly.
Pair Corralation between Ab Municipal and Abrdn Short
Assuming the 90 days horizon Ab Municipal Bond is expected to generate 0.81 times more return on investment than Abrdn Short. However, Ab Municipal Bond is 1.24 times less risky than Abrdn Short. It trades about 0.35 of its potential returns per unit of risk. Abrdn Short Duration is currently generating about 0.05 per unit of risk. If you would invest 1,046 in Ab Municipal Bond on June 9, 2025 and sell it today you would earn a total of 29.00 from holding Ab Municipal Bond or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Municipal Bond vs. Abrdn Short Duration
Performance |
| Timeline |
| Ab Municipal Bond |
| Abrdn Short Duration |
Ab Municipal and Abrdn Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Abrdn Short
The main advantage of trading using opposite Ab Municipal and Abrdn Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Abrdn Short 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 Abrdn Short will offset losses from the drop in Abrdn Short's long position.| Ab Municipal vs. Matson Money International | Ab Municipal vs. Rbc Money Market | Ab Municipal vs. Profunds Money | Ab Municipal vs. Money Market Obligations |
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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 Stocks Directory module to find actively traded stocks across global markets.
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