Correlation Between SPDR Barclays and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both SPDR Barclays 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 SPDR Barclays and UBSFund Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR Barclays 10 and UBSFund Solutions Bloomberg, you can compare the effects of market volatilities on SPDR Barclays 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 SPDR Barclays with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR Barclays and UBSFund Solutions.
Diversification Opportunities for SPDR Barclays and UBSFund Solutions
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SPDR and UBSFund is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Barclays 10 and UBSFund Solutions Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions and SPDR Barclays 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 Barclays 10 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 has no effect on the direction of SPDR Barclays i.e., SPDR Barclays and UBSFund Solutions go up and down completely randomly.
Pair Corralation between SPDR Barclays and UBSFund Solutions
Assuming the 90 days trading horizon SPDR Barclays 10 is expected to generate 6.18 times more return on investment than UBSFund Solutions. However, SPDR Barclays is 6.18 times more volatile than UBSFund Solutions Bloomberg. It trades about 0.09 of its potential returns per unit of risk. UBSFund Solutions Bloomberg is currently generating about 0.21 per unit of risk. If you would invest 2,203 in SPDR Barclays 10 on September 1, 2024 and sell it today you would earn a total of 35.00 from holding SPDR Barclays 10 or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR Barclays 10 vs. UBSFund Solutions Bloomberg
Performance |
| Timeline |
| SPDR Barclays 10 |
| UBSFund Solutions |
SPDR Barclays and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR Barclays and UBSFund Solutions
The main advantage of trading using opposite SPDR Barclays and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR Barclays 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.| SPDR Barclays vs. SPDR Dow Jones | SPDR Barclays vs. SPDR SP Dividend | SPDR Barclays vs. SPDR Barclays Euro | SPDR Barclays vs. SPDR SP Consumer |
| UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions JP |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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