Correlation Between UBSFund Solutions and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and Lyxor UCITS 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 UBSFund Solutions and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBSFund Solutions Bloomberg and Lyxor UCITS Stoxx, you can compare the effects of market volatilities on UBSFund Solutions and Lyxor UCITS 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 UBSFund Solutions with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and Lyxor UCITS.
Diversification Opportunities for UBSFund Solutions and Lyxor UCITS
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UBSFund and Lyxor is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions Bloomberg and Lyxor UCITS Stoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS Stoxx and UBSFund Solutions 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 UBSFund Solutions Bloomberg are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS Stoxx has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and Lyxor UCITS go up and down completely randomly.
Pair Corralation between UBSFund Solutions and Lyxor UCITS
Assuming the 90 days trading horizon UBSFund Solutions is expected to generate 2.56 times less return on investment than Lyxor UCITS. In addition to that, UBSFund Solutions is 1.18 times more volatile than Lyxor UCITS Stoxx. It trades about 0.02 of its total potential returns per unit of risk. Lyxor UCITS Stoxx is currently generating about 0.05 per unit of volatility. If you would invest 4,713 in Lyxor UCITS Stoxx on September 2, 2024 and sell it today you would earn a total of 457.00 from holding Lyxor UCITS Stoxx or generate 9.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 87.45% |
| Values | Daily Returns |
UBSFund Solutions Bloomberg vs. Lyxor UCITS Stoxx
Performance |
| Timeline |
| UBSFund Solutions |
| Lyxor UCITS Stoxx |
UBSFund Solutions and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and Lyxor UCITS
The main advantage of trading using opposite UBSFund Solutions and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS's long position.| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |