Correlation Between UBS and UBS
Can any of the company-specific risk be diversified away by investing in both UBS and UBS 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 UBS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and UBS, you can compare the effects of market volatilities on UBS and UBS 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 UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and UBS.
Diversification Opportunities for UBS and UBS
Significant diversification
The 3 months correlation between UBS and UBS is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding UBS and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS 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 UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of UBS i.e., UBS and UBS go up and down completely randomly.
Pair Corralation between UBS and UBS
If you would invest 20,123 in UBS on September 12, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS vs. UBS
Performance |
| Timeline |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UBS and UBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS and UBS
The main advantage of trading using opposite UBS and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, UBS 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 UBS will offset losses from the drop in UBS's long position.The idea behind UBS and UBS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| UBS vs. iShares MSCI France | UBS vs. iShares Europe ETF | UBS vs. iShares MSCI United | UBS vs. iShares MSCI Spain |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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