Correlation Between UBS ETF and Xtrackers Switzerland
Can any of the company-specific risk be diversified away by investing in both UBS ETF and Xtrackers Switzerland 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 Xtrackers Switzerland 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 Xtrackers Switzerland UCITS, you can compare the effects of market volatilities on UBS ETF and Xtrackers Switzerland 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 Xtrackers Switzerland. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and Xtrackers Switzerland.
Diversification Opportunities for UBS ETF and Xtrackers Switzerland
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between UBS and Xtrackers is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF MSCI and Xtrackers Switzerland UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Switzerland 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 Xtrackers Switzerland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Switzerland has no effect on the direction of UBS ETF i.e., UBS ETF and Xtrackers Switzerland go up and down completely randomly.
Pair Corralation between UBS ETF and Xtrackers Switzerland
Assuming the 90 days trading horizon UBS ETF MSCI is expected to generate 1.03 times more return on investment than Xtrackers Switzerland. However, UBS ETF is 1.03 times more volatile than Xtrackers Switzerland UCITS. It trades about 0.05 of its potential returns per unit of risk. Xtrackers Switzerland UCITS is currently generating about 0.03 per unit of risk. If you would invest 1,644 in UBS ETF MSCI on September 12, 2024 and sell it today you would earn a total of 338.00 from holding UBS ETF MSCI or generate 20.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
UBS ETF MSCI vs. Xtrackers Switzerland UCITS
Performance |
| Timeline |
| UBS ETF MSCI |
| Xtrackers Switzerland |
UBS ETF and Xtrackers Switzerland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETF and Xtrackers Switzerland
The main advantage of trading using opposite UBS ETF and Xtrackers Switzerland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, Xtrackers Switzerland 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 Xtrackers Switzerland will offset losses from the drop in Xtrackers Switzerland's long position.| UBS ETF vs. Baloise Holding AG | UBS ETF vs. 21Shares Polkadot ETP | UBS ETF vs. BB Biotech AG | UBS ETF vs. Amundi Index Solutions |
| Xtrackers Switzerland vs. Baloise Holding AG | Xtrackers Switzerland vs. 21Shares Polkadot ETP | Xtrackers Switzerland vs. UBS ETF MSCI | Xtrackers Switzerland vs. BB Biotech AG |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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