Correlation Between UBS and IShares Short
Can any of the company-specific risk be diversified away by investing in both UBS and IShares Short 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 Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and iShares Short Maturity, you can compare the effects of market volatilities on UBS and IShares Short 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 Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and IShares Short.
Diversification Opportunities for UBS and IShares Short
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and IShares is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding UBS and iShares Short Maturity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Short Maturity 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 Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Short Maturity has no effect on the direction of UBS i.e., UBS and IShares Short go up and down completely randomly.
Pair Corralation between UBS and IShares Short
If you would invest 5,059 in iShares Short Maturity on September 4, 2024 and sell it today you would earn a total of 7.00 from holding iShares Short Maturity or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
UBS vs. iShares Short Maturity
Performance |
| Timeline |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares Short Maturity |
UBS and IShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS and IShares Short
The main advantage of trading using opposite UBS and IShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, IShares Short 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 Short will offset losses from the drop in IShares Short's long position.| UBS vs. Vanguard Growth Index | UBS vs. iShares Russell 1000 | UBS vs. iShares Core SP | UBS vs. Vanguard Mega Cap |
| IShares Short vs. Invesco Ultra Short | IShares Short vs. iShares Ultra Short Term | IShares Short vs. PIMCO Enhanced Short | IShares Short vs. iShares Floating Rate |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |