Correlation Between UBS Fund and UBS AG
Can any of the company-specific risk be diversified away by investing in both UBS Fund 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 UBS Fund and UBS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Fund Solutions and UBS AG UBS, you can compare the effects of market volatilities on UBS Fund 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 UBS Fund with a short position of UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and UBS AG.
Diversification Opportunities for UBS Fund and UBS AG
Very weak diversification
The 3 months correlation between UBS and UBS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and UBS AG UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG UBS and UBS Fund 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 Fund Solutions 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 UBS has no effect on the direction of UBS Fund i.e., UBS Fund and UBS AG go up and down completely randomly.
Pair Corralation between UBS Fund and UBS AG
Assuming the 90 days trading horizon UBS Fund Solutions is expected to under-perform the UBS AG. In addition to that, UBS Fund is 1.56 times more volatile than UBS AG UBS. It trades about -0.08 of its total potential returns per unit of risk. UBS AG UBS is currently generating about 0.15 per unit of volatility. If you would invest 7,961 in UBS AG UBS on August 30, 2024 and sell it today you would earn a total of 270.00 from holding UBS AG UBS or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS Fund Solutions vs. UBS AG UBS
Performance |
| Timeline |
| UBS Fund Solutions |
| UBS AG UBS |
UBS Fund and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Fund and UBS AG
The main advantage of trading using opposite UBS Fund and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund 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.| UBS Fund vs. GraniteShares 3x Short | UBS Fund vs. WisdomTree Natural Gas | UBS Fund vs. Leverage Shares 3x | UBS Fund vs. WisdomTree Natural Gas |
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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.
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