Correlation Between Harbor Health and UBS ETRACS
Can any of the company-specific risk be diversified away by investing in both Harbor Health and UBS ETRACS 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 Harbor Health and UBS ETRACS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Health Care and UBS ETRACS , you can compare the effects of market volatilities on Harbor Health and UBS ETRACS 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 Harbor Health with a short position of UBS ETRACS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Health and UBS ETRACS.
Diversification Opportunities for Harbor Health and UBS ETRACS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harbor and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Health Care and UBS ETRACS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETRACS and Harbor Health 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 Harbor Health Care are associated (or correlated) with UBS ETRACS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETRACS has no effect on the direction of Harbor Health i.e., Harbor Health and UBS ETRACS go up and down completely randomly.
Pair Corralation between Harbor Health and UBS ETRACS
Given the investment horizon of 90 days Harbor Health Care is expected to under-perform the UBS ETRACS. But the etf apears to be less risky and, when comparing its historical volatility, Harbor Health Care is 3.26 times less risky than UBS ETRACS. The etf trades about -0.05 of its potential returns per unit of risk. The UBS ETRACS is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,373 in UBS ETRACS on August 29, 2024 and sell it today you would earn a total of 151.00 from holding UBS ETRACS or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbor Health Care vs. UBS ETRACS
Performance |
| Timeline |
| Harbor Health Care |
| UBS ETRACS |
Harbor Health and UBS ETRACS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Health and UBS ETRACS
The main advantage of trading using opposite Harbor Health and UBS ETRACS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Health position performs unexpectedly, UBS ETRACS 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 ETRACS will offset losses from the drop in UBS ETRACS's long position.| Harbor Health vs. Horizon Kinetics Medical | Harbor Health vs. Ginkgo Bioworks Holdings | Harbor Health vs. Myriad Genetics |
| UBS ETRACS vs. First Trust Exchange Traded | UBS ETRACS vs. Ultimus Managers Trust | UBS ETRACS vs. Horizon Kinetics Medical | UBS ETRACS vs. Harbor Health Care |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |