Correlation Between Lyxor UCITS and UBS Fund
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By analyzing existing cross correlation between Lyxor UCITS EuroMTS and UBS Fund Solutions, you can compare the effects of market volatilities on Lyxor UCITS and UBS Fund 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 Lyxor UCITS with a short position of UBS Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyxor UCITS and UBS Fund.
Diversification Opportunities for Lyxor UCITS and UBS Fund
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lyxor and UBS is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lyxor UCITS EuroMTS and UBS Fund Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Fund Solutions and Lyxor UCITS 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 Lyxor UCITS EuroMTS are associated (or correlated) with UBS Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Fund Solutions has no effect on the direction of Lyxor UCITS i.e., Lyxor UCITS and UBS Fund go up and down completely randomly.
Pair Corralation between Lyxor UCITS and UBS Fund
Assuming the 90 days trading horizon Lyxor UCITS is expected to generate 4.2 times less return on investment than UBS Fund. But when comparing it to its historical volatility, Lyxor UCITS EuroMTS is 9.1 times less risky than UBS Fund. It trades about 0.11 of its potential returns per unit of risk. UBS Fund Solutions is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,199 in UBS Fund Solutions on August 27, 2024 and sell it today you would earn a total of 981.00 from holding UBS Fund Solutions or generate 23.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyxor UCITS EuroMTS vs. UBS Fund Solutions
Performance |
| Timeline |
| Lyxor UCITS EuroMTS |
| UBS Fund Solutions |
Lyxor UCITS and UBS Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyxor UCITS and UBS Fund
The main advantage of trading using opposite Lyxor UCITS and UBS Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyxor UCITS position performs unexpectedly, UBS Fund 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 Fund will offset losses from the drop in UBS Fund's long position.| Lyxor UCITS vs. UBS Fund Solutions | Lyxor UCITS vs. Xtrackers II | Lyxor UCITS vs. Xtrackers Nikkei 225 | Lyxor UCITS vs. iShares VII PLC |
| UBS Fund vs. UBS Barclays Liquid | UBS Fund vs. UBS ETF Public | UBS Fund vs. UBS ETF SICAV | UBS Fund vs. UBS Fund 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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