Correlation Between Ab Municipal and Persimmon Long/short
Can any of the company-specific risk be diversified away by investing in both Ab Municipal and Persimmon Long/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 Persimmon Long/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 Persimmon Longshort Fund, you can compare the effects of market volatilities on Ab Municipal and Persimmon Long/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 Persimmon Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Municipal and Persimmon Long/short.
Diversification Opportunities for Ab Municipal and Persimmon Long/short
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AUNTX and PERSIMMON is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ab Municipal Bond and Persimmon Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Persimmon Long/short 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 Persimmon Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Persimmon Long/short has no effect on the direction of Ab Municipal i.e., Ab Municipal and Persimmon Long/short go up and down completely randomly.
Pair Corralation between Ab Municipal and Persimmon Long/short
Assuming the 90 days horizon Ab Municipal is expected to generate 2.89 times less return on investment than Persimmon Long/short. But when comparing it to its historical volatility, Ab Municipal Bond is 5.17 times less risky than Persimmon Long/short. It trades about 0.19 of its potential returns per unit of risk. Persimmon Longshort Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,665 in Persimmon Longshort Fund on September 4, 2025 and sell it today you would earn a total of 66.00 from holding Persimmon Longshort Fund or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Ab Municipal Bond vs. Persimmon Longshort Fund
Performance |
| Timeline |
| Ab Municipal Bond |
| Persimmon Long/short |
Ab Municipal and Persimmon Long/short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Municipal and Persimmon Long/short
The main advantage of trading using opposite Ab Municipal and Persimmon Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Municipal position performs unexpectedly, Persimmon Long/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 Persimmon Long/short will offset losses from the drop in Persimmon Long/short's long position.| Ab Municipal vs. Lincoln Inflation Plus | Ab Municipal vs. Nationwide Inflation Protected Securities | Ab Municipal vs. Ab Bond Inflation | Ab Municipal vs. Western Asset Inflation |
| Persimmon Long/short vs. Tiaa Cref Life Money | Persimmon Long/short vs. Voya Government Money | Persimmon Long/short vs. Prudential Government Money | Persimmon Long/short 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |