Correlation Between Ubs Emerging and Oil Gas
Can any of the company-specific risk be diversified away by investing in both Ubs Emerging and Oil Gas 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 Emerging and Oil Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Emerging Markets and Oil Gas Ultrasector, you can compare the effects of market volatilities on Ubs Emerging and Oil Gas 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 Emerging with a short position of Oil Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Emerging and Oil Gas.
Diversification Opportunities for Ubs Emerging and Oil Gas
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ubs and Oil is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Emerging Markets and Oil Gas Ultrasector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Gas Ultrasector and Ubs Emerging 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 Emerging Markets are associated (or correlated) with Oil Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Gas Ultrasector has no effect on the direction of Ubs Emerging i.e., Ubs Emerging and Oil Gas go up and down completely randomly.
Pair Corralation between Ubs Emerging and Oil Gas
Assuming the 90 days horizon Ubs Emerging Markets is expected to under-perform the Oil Gas. But the mutual fund apears to be less risky and, when comparing its historical volatility, Ubs Emerging Markets is 1.65 times less risky than Oil Gas. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Oil Gas Ultrasector is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,752 in Oil Gas Ultrasector on September 1, 2024 and sell it today you would earn a total of 236.00 from holding Oil Gas Ultrasector or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ubs Emerging Markets vs. Oil Gas Ultrasector
Performance |
| Timeline |
| Ubs Emerging Markets |
| Oil Gas Ultrasector |
Ubs Emerging and Oil Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Emerging and Oil Gas
The main advantage of trading using opposite Ubs Emerging and Oil Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Emerging position performs unexpectedly, Oil Gas 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 Oil Gas will offset losses from the drop in Oil Gas' long position.| Ubs Emerging vs. Pace Smallmedium Value | Ubs Emerging vs. Pace International Equity | Ubs Emerging vs. Pace International Equity | Ubs Emerging vs. Ubs Allocation Fund |
| Oil Gas vs. Oil Gas Ultrasector | Oil Gas vs. Ultramid Cap Profund Ultramid Cap | Oil Gas vs. Precious Metals Ultrasector | Oil Gas vs. Real Estate Ultrasector |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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