Correlation Between UBS ETF and LG Battery
Can any of the company-specific risk be diversified away by investing in both UBS ETF and LG Battery 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 UBS ETF and LG Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETF MSCI and LG Battery Value Chain, you can compare the effects of market volatilities on UBS ETF and LG Battery 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 UBS ETF with a short position of LG Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and LG Battery.
Diversification Opportunities for UBS ETF and LG Battery
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between UBS and BATT is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF MSCI and LG Battery Value Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Battery Value and UBS ETF 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 UBS ETF MSCI are associated (or correlated) with LG Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Battery Value has no effect on the direction of UBS ETF i.e., UBS ETF and LG Battery go up and down completely randomly.
Pair Corralation between UBS ETF and LG Battery
Assuming the 90 days trading horizon UBS ETF MSCI is expected to generate 0.35 times more return on investment than LG Battery. However, UBS ETF MSCI is 2.83 times less risky than LG Battery. It trades about 0.52 of its potential returns per unit of risk. LG Battery Value Chain is currently generating about 0.14 per unit of risk. If you would invest 1,973 in UBS ETF MSCI on October 25, 2024 and sell it today you would earn a total of 86.00 from holding UBS ETF MSCI or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS ETF MSCI vs. LG Battery Value Chain
Performance |
| Timeline |
| UBS ETF MSCI |
| LG Battery Value |
UBS ETF and LG Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETF and LG Battery
The main advantage of trading using opposite UBS ETF and LG Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, LG Battery 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 LG Battery will offset losses from the drop in LG Battery's long position.| UBS ETF vs. UBSFund Solutions MSCI | UBS ETF vs. Vanguard SP 500 | UBS ETF vs. iShares VII PLC | UBS ETF vs. iShares Core SP |
| LG Battery vs. Vanguard FTSE Emerging | LG Battery vs. UBS ETF MSCI | LG Battery vs. VanEck Solana ETN | LG Battery vs. iShares Corp Bond |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |