Correlation Between UBS and IShares Global
Can any of the company-specific risk be diversified away by investing in both UBS and IShares Global 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 IShares Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and iShares Global Consumer, you can compare the effects of market volatilities on UBS and IShares Global 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 IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and IShares Global.
Diversification Opportunities for UBS and IShares Global
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UBS and IShares is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding UBS and iShares Global Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Consumer 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 IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Consumer has no effect on the direction of UBS i.e., UBS and IShares Global go up and down completely randomly.
Pair Corralation between UBS and IShares Global
If you would invest 94,329 in UBS on August 26, 2024 and sell it today you would earn a total of 0.00 from holding UBS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
UBS vs. iShares Global Consumer
Performance |
| Timeline |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Global Consumer |
UBS and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS and IShares Global
The main advantage of trading using opposite UBS and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, IShares Global 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 IShares Global will offset losses from the drop in IShares Global's long position.| UBS vs. Invesco Dynamic Large | UBS vs. Perella Weinberg Partners | UBS vs. HUMANA INC | UBS vs. Aquagold International |
| IShares Global vs. Vanguard Consumer Discretionary | IShares Global vs. Vanguard Utilities Index | IShares Global vs. Vanguard Industrials Index | IShares Global vs. Vanguard Materials Index |
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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