Correlation Between DSJA and UBS ETRACS
Can any of the company-specific risk be diversified away by investing in both DSJA and UBS ETRACS 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 DSJA and UBS ETRACS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DSJA and UBS ETRACS , you can compare the effects of market volatilities on DSJA and UBS ETRACS 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 DSJA with a short position of UBS ETRACS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DSJA and UBS ETRACS.
Diversification Opportunities for DSJA and UBS ETRACS
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DSJA and UBS is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding DSJA and UBS ETRACS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETRACS and DSJA 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 DSJA are associated (or correlated) with UBS ETRACS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETRACS has no effect on the direction of DSJA i.e., DSJA and UBS ETRACS go up and down completely randomly.
Pair Corralation between DSJA and UBS ETRACS
If you would invest 2,865 in DSJA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding DSJA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
DSJA vs. UBS ETRACS
Performance |
| Timeline |
| DSJA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| UBS ETRACS |
DSJA and UBS ETRACS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DSJA and UBS ETRACS
The main advantage of trading using opposite DSJA and UBS ETRACS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DSJA position performs unexpectedly, UBS ETRACS 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 ETRACS will offset losses from the drop in UBS ETRACS's long position.The idea behind DSJA and UBS ETRACS 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.| UBS ETRACS vs. First Trust Exchange Traded | UBS ETRACS vs. Ultimus Managers Trust | UBS ETRACS vs. Horizon Kinetics Medical | UBS ETRACS vs. Harbor Health Care |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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