Correlation Between UBS AG and IShares Trust
Can any of the company-specific risk be diversified away by investing in both UBS AG and IShares Trust 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 IShares Trust 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 iShares Trust, you can compare the effects of market volatilities on UBS AG and IShares Trust 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 IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS AG and IShares Trust.
Diversification Opportunities for UBS AG and IShares Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UBS and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS AG London and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust 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 IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of UBS AG i.e., UBS AG and IShares Trust go up and down completely randomly.
Pair Corralation between UBS AG and IShares Trust
Given the investment horizon of 90 days UBS AG is expected to generate 1.55 times less return on investment than IShares Trust. In addition to that, UBS AG is 2.1 times more volatile than iShares Trust. It trades about 0.08 of its total potential returns per unit of risk. iShares Trust is currently generating about 0.26 per unit of volatility. If you would invest 2,559 in iShares Trust on September 12, 2024 and sell it today you would earn a total of 98.00 from holding iShares Trust or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS AG London vs. iShares Trust
Performance |
| Timeline |
| UBS AG London |
| iShares Trust |
UBS AG and IShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS AG and IShares Trust
The main advantage of trading using opposite UBS AG and IShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS AG position performs unexpectedly, IShares Trust 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 Trust will offset losses from the drop in IShares Trust's long position.| UBS AG vs. Freedom Day Dividend | UBS AG vs. Franklin Templeton ETF | UBS AG vs. iShares MSCI China | UBS AG vs. Tidal Trust II |
| IShares Trust vs. Freedom Day Dividend | IShares Trust vs. Franklin Templeton ETF | IShares Trust vs. iShares MSCI China | IShares Trust vs. Tidal Trust II |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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