Correlation Between American Funds and Ubs Money
Can any of the company-specific risk be diversified away by investing in both American Funds and Ubs Money 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 American Funds and Ubs Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Growth and Ubs Money Series, you can compare the effects of market volatilities on American Funds and Ubs Money 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 American Funds with a short position of Ubs Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Ubs Money.
Diversification Opportunities for American Funds and Ubs Money
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and Ubs is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Growth and Ubs Money Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Money Series and American Funds 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 American Funds Growth are associated (or correlated) with Ubs Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Money Series has no effect on the direction of American Funds i.e., American Funds and Ubs Money go up and down completely randomly.
Pair Corralation between American Funds and Ubs Money
If you would invest 2,668 in American Funds Growth on August 31, 2024 and sell it today you would earn a total of 60.00 from holding American Funds Growth or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Growth vs. Ubs Money Series
Performance |
| Timeline |
| American Funds Growth |
| Ubs Money Series |
American Funds and Ubs Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Ubs Money
The main advantage of trading using opposite American Funds and Ubs Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, Ubs Money 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 Money will offset losses from the drop in Ubs Money's long position.| American Funds vs. American Funds Growth | American Funds vs. American Funds Growth | American Funds vs. American Funds Growth | American Funds vs. Franklin Mutual Shares |
| Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard 500 Index | Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard Total Stock |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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