Correlation Between UBS AG and SMI 3Fourteen
Can any of the company-specific risk be diversified away by investing in both UBS AG and SMI 3Fourteen 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 AG and SMI 3Fourteen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS AG London and SMI 3Fourteen Full Cycle, you can compare the effects of market volatilities on UBS AG and SMI 3Fourteen 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 AG with a short position of SMI 3Fourteen. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS AG and SMI 3Fourteen.
Diversification Opportunities for UBS AG and SMI 3Fourteen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UBS and SMI is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding UBS AG London and SMI 3Fourteen Full Cycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMI 3Fourteen Full and UBS AG 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 AG London are associated (or correlated) with SMI 3Fourteen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMI 3Fourteen Full has no effect on the direction of UBS AG i.e., UBS AG and SMI 3Fourteen go up and down completely randomly.
Pair Corralation between UBS AG and SMI 3Fourteen
Given the investment horizon of 90 days UBS AG London is expected to generate 2.43 times more return on investment than SMI 3Fourteen. However, UBS AG is 2.43 times more volatile than SMI 3Fourteen Full Cycle. It trades about 0.45 of its potential returns per unit of risk. SMI 3Fourteen Full Cycle is currently generating about 0.18 per unit of risk. If you would invest 4,738 in UBS AG London on September 4, 2024 and sell it today you would earn a total of 908.00 from holding UBS AG London or generate 19.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS AG London vs. SMI 3Fourteen Full Cycle
Performance |
| Timeline |
| UBS AG London |
| SMI 3Fourteen Full |
UBS AG and SMI 3Fourteen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS AG and SMI 3Fourteen
The main advantage of trading using opposite UBS AG and SMI 3Fourteen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS AG position performs unexpectedly, SMI 3Fourteen 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 SMI 3Fourteen will offset losses from the drop in SMI 3Fourteen's long position.| UBS AG vs. ProShares Ultra SP500 | UBS AG vs. ProShares Ultra QQQ | UBS AG vs. MicroSectors FANG Index | UBS AG vs. ProShares Ultra Financials |
| SMI 3Fourteen vs. Vanguard Total Stock | SMI 3Fourteen vs. SPDR SP 500 | SMI 3Fourteen vs. iShares Core SP | SMI 3Fourteen vs. Vanguard Dividend Appreciation |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |