Correlation Between Growth Fund and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both Growth Fund 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 Growth Fund and UBSFund Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and UBSFund Solutions JP, you can compare the effects of market volatilities on Growth Fund 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 Growth Fund with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and UBSFund Solutions.
Diversification Opportunities for Growth Fund and UBSFund Solutions
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Growth and UBSFund is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and UBSFund Solutions JP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions and Growth Fund 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 Growth Fund Of 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 Growth Fund i.e., Growth Fund and UBSFund Solutions go up and down completely randomly.
Pair Corralation between Growth Fund and UBSFund Solutions
Assuming the 90 days horizon Growth Fund Of is expected to generate 2.83 times more return on investment than UBSFund Solutions. However, Growth Fund is 2.83 times more volatile than UBSFund Solutions JP. It trades about 0.1 of its potential returns per unit of risk. UBSFund Solutions JP is currently generating about 0.03 per unit of risk. If you would invest 6,152 in Growth Fund Of on November 3, 2024 and sell it today you would earn a total of 1,679 from holding Growth Fund Of or generate 27.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Growth Fund Of vs. UBSFund Solutions JP
Performance |
| Timeline |
| Growth Fund |
| UBSFund Solutions |
Growth Fund and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and UBSFund Solutions
The main advantage of trading using opposite Growth Fund and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund 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.| Growth Fund vs. Capital World Growth | Growth Fund vs. Europacific Growth Fund | Growth Fund vs. New Perspective Fund | Growth Fund vs. Investment Of America |
| UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions MSCI |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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