Correlation Between UBS and First Trust
Can any of the company-specific risk be diversified away by investing in both UBS and First Trust 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 and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and First Trust Alternative, you can compare the effects of market volatilities on UBS and First Trust 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 with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and First Trust.
Diversification Opportunities for UBS and First Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UBS and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS and First Trust Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Alternative and UBS 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 are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Alternative has no effect on the direction of UBS i.e., UBS and First Trust go up and down completely randomly.
Pair Corralation between UBS and First Trust
If you would invest 2,745 in First Trust Alternative on November 28, 2024 and sell it today you would earn a total of 68.00 from holding First Trust Alternative or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UBS vs. First Trust Alternative
Performance |
| Timeline |
| UBS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| First Trust Alternative |
UBS and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS and First Trust
The main advantage of trading using opposite UBS and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| UBS vs. UBS AG London | UBS vs. iShares Bloomberg Roll | UBS vs. GraniteShares Bloomberg Commodity | UBS vs. abrdn Bloomberg All |
| First Trust vs. First Trust Emerging | First Trust vs. First Trust Income | First Trust vs. First Trust SSI | First Trust vs. First Trust Indxx |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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