Correlation Between UBSFund Solutions and MULTI UNITS
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and MULTI UNITS 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 UBSFund Solutions and MULTI UNITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBSFund Solutions MSCI and MULTI UNITS LUXEMBOURG , you can compare the effects of market volatilities on UBSFund Solutions and MULTI UNITS 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 UBSFund Solutions with a short position of MULTI UNITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and MULTI UNITS.
Diversification Opportunities for UBSFund Solutions and MULTI UNITS
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UBSFund and MULTI is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions MSCI and MULTI UNITS LUXEMBOURG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MULTI UNITS LUXEMBOURG and UBSFund Solutions 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 UBSFund Solutions MSCI are associated (or correlated) with MULTI UNITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MULTI UNITS LUXEMBOURG has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and MULTI UNITS go up and down completely randomly.
Pair Corralation between UBSFund Solutions and MULTI UNITS
Assuming the 90 days trading horizon UBSFund Solutions MSCI is expected to generate 0.78 times more return on investment than MULTI UNITS. However, UBSFund Solutions MSCI is 1.29 times less risky than MULTI UNITS. It trades about 0.06 of its potential returns per unit of risk. MULTI UNITS LUXEMBOURG is currently generating about -0.09 per unit of risk. If you would invest 4,866 in UBSFund Solutions MSCI on September 12, 2024 and sell it today you would earn a total of 53.00 from holding UBSFund Solutions MSCI or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
UBSFund Solutions MSCI vs. MULTI UNITS LUXEMBOURG
Performance |
| Timeline |
| UBSFund Solutions MSCI |
| MULTI UNITS LUXEMBOURG |
UBSFund Solutions and MULTI UNITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and MULTI UNITS
The main advantage of trading using opposite UBSFund Solutions and MULTI UNITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, MULTI UNITS 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 MULTI UNITS will offset losses from the drop in MULTI UNITS's long position.| UBSFund Solutions vs. Baloise Holding AG | UBSFund Solutions vs. 21Shares Polkadot ETP | UBSFund Solutions vs. UBS ETF MSCI | UBSFund Solutions vs. BB Biotech AG |
| MULTI UNITS vs. UBSFund Solutions MSCI | MULTI UNITS vs. Vanguard SP 500 | MULTI UNITS vs. iShares VII PLC | MULTI UNITS vs. iShares Core SP |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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