Correlation Between SPDR Dow and UBS Property
Can any of the company-specific risk be diversified away by investing in both SPDR Dow and UBS Property 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 SPDR Dow and UBS Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Dow Jones and UBS Property, you can compare the effects of market volatilities on SPDR Dow and UBS Property 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 SPDR Dow with a short position of UBS Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Dow and UBS Property.
Diversification Opportunities for SPDR Dow and UBS Property
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPDR and UBS is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Dow Jones and UBS Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Property and SPDR Dow 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 SPDR Dow Jones are associated (or correlated) with UBS Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Property has no effect on the direction of SPDR Dow i.e., SPDR Dow and UBS Property go up and down completely randomly.
Pair Corralation between SPDR Dow and UBS Property
Assuming the 90 days trading horizon SPDR Dow Jones is expected to under-perform the UBS Property. But the etf apears to be less risky and, when comparing its historical volatility, SPDR Dow Jones is 1.12 times less risky than UBS Property. The etf trades about -0.08 of its potential returns per unit of risk. The UBS Property is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,620 in UBS Property on September 25, 2024 and sell it today you would earn a total of 420.00 from holding UBS Property or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Dow Jones vs. UBS Property
Performance |
| Timeline |
| SPDR Dow Jones |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| UBS Property |
SPDR Dow and UBS Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Dow and UBS Property
The main advantage of trading using opposite SPDR Dow and UBS Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Dow position performs unexpectedly, UBS Property 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 Property will offset losses from the drop in UBS Property's long position.| SPDR Dow vs. SPDR MSCI Europe | SPDR Dow vs. SPDR SP Utilities | SPDR Dow vs. SPDR MSCI Europe | SPDR Dow vs. SPDR MSCI EM |
| UBS Property vs. Procimmo Real Estate | UBS Property vs. Baloise Holding AG | UBS Property vs. Banque Cantonale du | UBS Property vs. Invesco EQQQ NASDAQ 100 |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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