Correlation Between Lincoln Inflation and Ab Municipal
Can any of the company-specific risk be diversified away by investing in both Lincoln Inflation and Ab Municipal 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 Lincoln Inflation and Ab Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lincoln Inflation Plus and Ab Municipal Bond, you can compare the effects of market volatilities on Lincoln Inflation and Ab Municipal 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 Lincoln Inflation with a short position of Ab Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln Inflation and Ab Municipal.
Diversification Opportunities for Lincoln Inflation and Ab Municipal
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lincoln and AUNYX is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln Inflation Plus and Ab Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Municipal Bond and Lincoln Inflation 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 Lincoln Inflation Plus are associated (or correlated) with Ab Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Municipal Bond has no effect on the direction of Lincoln Inflation i.e., Lincoln Inflation and Ab Municipal go up and down completely randomly.
Pair Corralation between Lincoln Inflation and Ab Municipal
Assuming the 90 days horizon Lincoln Inflation Plus is expected to generate 4.76 times more return on investment than Ab Municipal. However, Lincoln Inflation is 4.76 times more volatile than Ab Municipal Bond. It trades about 0.14 of its potential returns per unit of risk. Ab Municipal Bond is currently generating about 0.06 per unit of risk. If you would invest 1,015 in Lincoln Inflation Plus on September 11, 2025 and sell it today you would earn a total of 44.00 from holding Lincoln Inflation Plus or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lincoln Inflation Plus vs. Ab Municipal Bond
Performance |
| Timeline |
| Lincoln Inflation Plus |
| Ab Municipal Bond |
Lincoln Inflation and Ab Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln Inflation and Ab Municipal
The main advantage of trading using opposite Lincoln Inflation and Ab Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln Inflation position performs unexpectedly, Ab Municipal 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 Ab Municipal will offset losses from the drop in Ab Municipal's long position.| Lincoln Inflation vs. Pace Municipal Fixed | Lincoln Inflation vs. Georgia Tax Free Bond | Lincoln Inflation vs. Doubleline Total Return | Lincoln Inflation vs. Nuveen Strategic Municipal |
| Ab Municipal vs. Transamerica Intermediate Muni | Ab Municipal vs. Rbc Money Market | Ab Municipal vs. Metropolitan West Unconstrained | Ab Municipal vs. Lind Capital Partners |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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