Correlation Between Amazon and Ubs Select
Can any of the company-specific risk be diversified away by investing in both Amazon and Ubs Select 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 Amazon and Ubs Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon Inc and Ubs Select Prime, you can compare the effects of market volatilities on Amazon and Ubs Select 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 Amazon with a short position of Ubs Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and Ubs Select.
Diversification Opportunities for Amazon and Ubs Select
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Amazon and Ubs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc and Ubs Select Prime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Select Prime and Amazon 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 Amazon Inc are associated (or correlated) with Ubs Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Select Prime has no effect on the direction of Amazon i.e., Amazon and Ubs Select go up and down completely randomly.
Pair Corralation between Amazon and Ubs Select
If you would invest 17,540 in Amazon Inc on January 7, 2025 and sell it today you would lose (14.00) from holding Amazon Inc or give up 0.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.68% |
| Values | Daily Returns |
Amazon Inc vs. Ubs Select Prime
Performance |
| Timeline |
| Amazon Inc |
| Ubs Select Prime |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Amazon and Ubs Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon and Ubs Select
The main advantage of trading using opposite Amazon and Ubs Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon position performs unexpectedly, Ubs Select 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 Ubs Select will offset losses from the drop in Ubs Select's long position.The idea behind Amazon Inc and Ubs Select Prime pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ubs Select vs. Alphacentric Lifesci Healthcare | Ubs Select vs. Hartford Healthcare Hls | Ubs Select vs. The Hartford Healthcare | Ubs Select vs. Blackrock Health Sciences |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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