Correlation Between VanEck BDC and UBS AG
Can any of the company-specific risk be diversified away by investing in both VanEck BDC 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 VanEck BDC and UBS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck BDC Income and UBS AG London, you can compare the effects of market volatilities on VanEck BDC 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 VanEck BDC with a short position of UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck BDC and UBS AG.
Diversification Opportunities for VanEck BDC and UBS AG
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VanEck and UBS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding VanEck BDC Income 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 VanEck BDC 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 VanEck BDC Income 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 VanEck BDC i.e., VanEck BDC and UBS AG go up and down completely randomly.
Pair Corralation between VanEck BDC and UBS AG
Given the investment horizon of 90 days VanEck BDC is expected to generate 1.91 times less return on investment than UBS AG. But when comparing it to its historical volatility, VanEck BDC Income is 1.47 times less risky than UBS AG. It trades about 0.46 of its potential returns per unit of risk. UBS AG London is currently generating about 0.6 of returns per unit of risk over similar time horizon. If you would invest 1,842 in UBS AG London on October 24, 2024 and sell it today you would earn a total of 201.00 from holding UBS AG London or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck BDC Income vs. UBS AG London
Performance |
| Timeline |
| VanEck BDC Income |
| UBS AG London |
VanEck BDC and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck BDC and UBS AG
The main advantage of trading using opposite VanEck BDC and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck BDC 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.| VanEck BDC vs. Virtus InfraCap Preferred | VanEck BDC vs. VanEck Mortgage REIT | VanEck BDC vs. XAI Octagon Floating | VanEck BDC vs. Amplify High Income |
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
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |