Correlation Between UBS and United States
Can any of the company-specific risk be diversified away by investing in both UBS and United States 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 United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and United States Copper, you can compare the effects of market volatilities on UBS and United States 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 United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and United States.
Diversification Opportunities for UBS and United States
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UBS and United is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding UBS and United States Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Copper 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 United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Copper has no effect on the direction of UBS i.e., UBS and United States go up and down completely randomly.
Pair Corralation between UBS and United States
Given the investment horizon of 90 days UBS is expected to generate 1.23 times more return on investment than United States. However, UBS is 1.23 times more volatile than United States Copper. It trades about 0.16 of its potential returns per unit of risk. United States Copper is currently generating about 0.03 per unit of risk. If you would invest 65,826 in UBS on September 3, 2024 and sell it today you would earn a total of 28,503 from holding UBS or generate 43.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 54.66% |
| Values | Daily Returns |
UBS vs. United States Copper
Performance |
| Timeline |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United States Copper |
UBS and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS and United States
The main advantage of trading using opposite UBS and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| UBS vs. Vanguard Growth Index | UBS vs. iShares Russell 1000 | UBS vs. iShares Core SP | UBS vs. Vanguard Mega Cap |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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