Correlation Between Barclays ETN and UBS AG
Can any of the company-specific risk be diversified away by investing in both Barclays ETN and UBS AG 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 Barclays ETN and UBS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barclays ETN Select and UBS AG London, you can compare the effects of market volatilities on Barclays ETN and UBS AG 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 Barclays ETN with a short position of UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays ETN and UBS AG.
Diversification Opportunities for Barclays ETN and UBS AG
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Barclays and UBS is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Barclays ETN Select and UBS AG London in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG London and Barclays ETN 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 Barclays ETN Select are associated (or correlated) with UBS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS AG London has no effect on the direction of Barclays ETN i.e., Barclays ETN and UBS AG go up and down completely randomly.
Pair Corralation between Barclays ETN and UBS AG
Given the investment horizon of 90 days Barclays ETN Select is expected to under-perform the UBS AG. In addition to that, Barclays ETN is 1.01 times more volatile than UBS AG London. It trades about -0.06 of its total potential returns per unit of risk. UBS AG London is currently generating about 0.07 per unit of volatility. If you would invest 2,016 in UBS AG London on November 18, 2024 and sell it today you would earn a total of 40.00 from holding UBS AG London or generate 1.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barclays ETN Select vs. UBS AG London
Performance |
| Timeline |
| Barclays ETN Select |
| UBS AG London |
Barclays ETN and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barclays ETN and UBS AG
The main advantage of trading using opposite Barclays ETN and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barclays ETN position performs unexpectedly, UBS AG 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 AG will offset losses from the drop in UBS AG's long position.| Barclays ETN vs. Alerian Energy Infrastructure | Barclays ETN vs. UBS AG London | Barclays ETN vs. First Trust North | Barclays ETN vs. Tortoise North American |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |