Correlation Between Leverage Shares and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both Leverage Shares and UBSFund Solutions 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 Leverage Shares and UBSFund Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leverage Shares 2x and UBSFund Solutions JP, you can compare the effects of market volatilities on Leverage Shares and UBSFund Solutions 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 Leverage Shares with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leverage Shares and UBSFund Solutions.
Diversification Opportunities for Leverage Shares and UBSFund Solutions
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Leverage and UBSFund is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Leverage Shares 2x and UBSFund Solutions JP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions and Leverage Shares 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 Leverage Shares 2x are associated (or correlated) with UBSFund Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBSFund Solutions has no effect on the direction of Leverage Shares i.e., Leverage Shares and UBSFund Solutions go up and down completely randomly.
Pair Corralation between Leverage Shares and UBSFund Solutions
Assuming the 90 days trading horizon Leverage Shares 2x is expected to generate 9.82 times more return on investment than UBSFund Solutions. However, Leverage Shares is 9.82 times more volatile than UBSFund Solutions JP. It trades about 0.17 of its potential returns per unit of risk. UBSFund Solutions JP is currently generating about 0.29 per unit of risk. If you would invest 4,738 in Leverage Shares 2x on September 1, 2024 and sell it today you would earn a total of 352.00 from holding Leverage Shares 2x or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Leverage Shares 2x vs. UBSFund Solutions JP
Performance |
| Timeline |
| Leverage Shares 2x |
| UBSFund Solutions |
Leverage Shares and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leverage Shares and UBSFund Solutions
The main advantage of trading using opposite Leverage Shares and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leverage Shares position performs unexpectedly, UBSFund Solutions 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 UBSFund Solutions will offset losses from the drop in UBSFund Solutions' long position.| Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. Leverage Shares 3x |
| UBSFund Solutions vs. Vanguard FTSE Developed | UBSFund Solutions vs. Leverage Shares 2x | UBSFund Solutions vs. Amundi Index Solutions | UBSFund Solutions vs. Amundi Index Solutions |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |