Correlation Between Ubs Engage and Global Gold
Can any of the company-specific risk be diversified away by investing in both Ubs Engage and Global Gold 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 Engage and Global Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Engage For and Global Gold Fund, you can compare the effects of market volatilities on Ubs Engage and Global Gold 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 Engage with a short position of Global Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Engage and Global Gold.
Diversification Opportunities for Ubs Engage and Global Gold
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ubs and Global is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Engage For and Global Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gold Fund and Ubs Engage 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 Engage For are associated (or correlated) with Global Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gold Fund has no effect on the direction of Ubs Engage i.e., Ubs Engage and Global Gold go up and down completely randomly.
Pair Corralation between Ubs Engage and Global Gold
Assuming the 90 days horizon Ubs Engage is expected to generate 3.19 times less return on investment than Global Gold. But when comparing it to its historical volatility, Ubs Engage For is 2.66 times less risky than Global Gold. It trades about 0.12 of its potential returns per unit of risk. Global Gold Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,235 in Global Gold Fund on September 13, 2024 and sell it today you would earn a total of 61.00 from holding Global Gold Fund or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubs Engage For vs. Global Gold Fund
Performance |
| Timeline |
| Ubs Engage For |
| Global Gold Fund |
Ubs Engage and Global Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Engage and Global Gold
The main advantage of trading using opposite Ubs Engage and Global Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Engage position performs unexpectedly, Global Gold 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 Global Gold will offset losses from the drop in Global Gold's long position.| Ubs Engage vs. Global Gold Fund | Ubs Engage vs. Invesco Gold Special | Ubs Engage vs. Vy Goldman Sachs | Ubs Engage vs. Franklin Gold Precious |
| Global Gold vs. Equity Growth Fund | Global Gold vs. Income Growth Fund | Global Gold vs. Diversified Bond Fund | Global Gold vs. Emerging Markets Fund |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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