Correlation Between UBS ETF and Sygnum Platform
Can any of the company-specific risk be diversified away by investing in both UBS ETF and Sygnum Platform 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 Sygnum Platform 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 Sygnum Platform Winners, you can compare the effects of market volatilities on UBS ETF and Sygnum Platform 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 Sygnum Platform. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and Sygnum Platform.
Diversification Opportunities for UBS ETF and Sygnum Platform
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between UBS and Sygnum is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF MSCI and Sygnum Platform Winners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sygnum Platform Winners 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 Sygnum Platform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sygnum Platform Winners has no effect on the direction of UBS ETF i.e., UBS ETF and Sygnum Platform go up and down completely randomly.
Pair Corralation between UBS ETF and Sygnum Platform
Assuming the 90 days trading horizon UBS ETF is expected to generate 3.39 times less return on investment than Sygnum Platform. But when comparing it to its historical volatility, UBS ETF MSCI is 5.89 times less risky than Sygnum Platform. It trades about 0.08 of its potential returns per unit of risk. Sygnum Platform Winners is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,496 in Sygnum Platform Winners on November 8, 2024 and sell it today you would earn a total of 472.00 from holding Sygnum Platform Winners or generate 31.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
UBS ETF MSCI vs. Sygnum Platform Winners
Performance |
| Timeline |
| UBS ETF MSCI |
| Sygnum Platform Winners |
UBS ETF and Sygnum Platform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETF and Sygnum Platform
The main advantage of trading using opposite UBS ETF and Sygnum Platform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, Sygnum Platform 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 Sygnum Platform will offset losses from the drop in Sygnum Platform's long position.The idea behind UBS ETF MSCI and Sygnum Platform Winners 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.| Sygnum Platform vs. UBSFund Solutions MSCI | Sygnum Platform vs. Vanguard SP 500 | Sygnum Platform vs. iShares VII PLC | Sygnum Platform vs. iShares Core SP |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |