Correlation Between MULTI UNITS and UBS ETF
Can any of the company-specific risk be diversified away by investing in both MULTI UNITS and UBS ETF 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 MULTI UNITS and UBS ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MULTI UNITS LUXEMBOURG and UBS ETF MSCI, you can compare the effects of market volatilities on MULTI UNITS and UBS ETF 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 MULTI UNITS with a short position of UBS ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of MULTI UNITS and UBS ETF.
Diversification Opportunities for MULTI UNITS and UBS ETF
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MULTI and UBS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MULTI UNITS LUXEMBOURG and UBS ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETF MSCI and MULTI UNITS 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 MULTI UNITS LUXEMBOURG are associated (or correlated) with UBS ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETF MSCI has no effect on the direction of MULTI UNITS i.e., MULTI UNITS and UBS ETF go up and down completely randomly.
Pair Corralation between MULTI UNITS and UBS ETF
Assuming the 90 days trading horizon MULTI UNITS LUXEMBOURG is expected to generate 1.38 times more return on investment than UBS ETF. However, MULTI UNITS is 1.38 times more volatile than UBS ETF MSCI. It trades about 0.41 of its potential returns per unit of risk. UBS ETF MSCI is currently generating about 0.04 per unit of risk. If you would invest 17,620 in MULTI UNITS LUXEMBOURG on September 19, 2024 and sell it today you would earn a total of 1,066 from holding MULTI UNITS LUXEMBOURG or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MULTI UNITS LUXEMBOURG vs. UBS ETF MSCI
Performance |
| Timeline |
| MULTI UNITS LUXEMBOURG |
| UBS ETF MSCI |
MULTI UNITS and UBS ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MULTI UNITS and UBS ETF
The main advantage of trading using opposite MULTI UNITS and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MULTI UNITS position performs unexpectedly, UBS ETF 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 ETF will offset losses from the drop in UBS ETF's long position.| MULTI UNITS vs. Baloise Holding AG | MULTI UNITS vs. 21Shares Polkadot ETP | MULTI UNITS vs. UBS ETF MSCI | MULTI UNITS vs. BB Biotech AG |
| UBS ETF vs. Baloise Holding AG | UBS ETF vs. 21Shares Polkadot ETP | UBS ETF vs. BB Biotech AG | UBS ETF vs. Amundi Index Solutions |
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 Stocks Directory module to find actively traded stocks across global markets.
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