Correlation Between HIAG Immobilien and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both HIAG Immobilien and UBSFund Solutions 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 HIAG Immobilien and UBSFund Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIAG Immobilien Holding and UBSFund Solutions MSCI, you can compare the effects of market volatilities on HIAG Immobilien and UBSFund Solutions 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 HIAG Immobilien with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIAG Immobilien and UBSFund Solutions.
Diversification Opportunities for HIAG Immobilien and UBSFund Solutions
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HIAG and UBSFund is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding HIAG Immobilien Holding and UBSFund Solutions MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions MSCI and HIAG Immobilien 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 HIAG Immobilien Holding are associated (or correlated) with UBSFund Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBSFund Solutions MSCI has no effect on the direction of HIAG Immobilien i.e., HIAG Immobilien and UBSFund Solutions go up and down completely randomly.
Pair Corralation between HIAG Immobilien and UBSFund Solutions
Assuming the 90 days trading horizon HIAG Immobilien Holding is expected to generate 0.52 times more return on investment than UBSFund Solutions. However, HIAG Immobilien Holding is 1.91 times less risky than UBSFund Solutions. It trades about 0.01 of its potential returns per unit of risk. UBSFund Solutions MSCI is currently generating about -0.02 per unit of risk. If you would invest 8,251 in HIAG Immobilien Holding on September 3, 2024 and sell it today you would earn a total of 9.00 from holding HIAG Immobilien Holding or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 89.94% |
| Values | Daily Returns |
HIAG Immobilien Holding vs. UBSFund Solutions MSCI
Performance |
| Timeline |
| HIAG Immobilien Holding |
| UBSFund Solutions MSCI |
HIAG Immobilien and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIAG Immobilien and UBSFund Solutions
The main advantage of trading using opposite HIAG Immobilien and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIAG Immobilien position performs unexpectedly, UBSFund Solutions 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 UBSFund Solutions will offset losses from the drop in UBSFund Solutions' long position.| HIAG Immobilien vs. Allreal Holding | HIAG Immobilien vs. Mobimo Hldg | HIAG Immobilien vs. Swiss Prime Site | HIAG Immobilien vs. PSP Swiss Property |
| UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions MSCI |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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