Correlation Between NYSE Composite and Ubs Us
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Ubs Us 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 NYSE Composite and Ubs Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Ubs Small Cap, you can compare the effects of market volatilities on NYSE Composite and Ubs Us 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 NYSE Composite with a short position of Ubs Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Ubs Us.
Diversification Opportunities for NYSE Composite and Ubs Us
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NYSE and Ubs is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Ubs Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Small Cap and NYSE Composite 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 NYSE Composite are associated (or correlated) with Ubs Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Small Cap has no effect on the direction of NYSE Composite i.e., NYSE Composite and Ubs Us go up and down completely randomly.
Pair Corralation between NYSE Composite and Ubs Us
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.04 times less return on investment than Ubs Us. But when comparing it to its historical volatility, NYSE Composite is 1.85 times less risky than Ubs Us. It trades about 0.08 of its potential returns per unit of risk. Ubs Small Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,910 in Ubs Small Cap on September 3, 2024 and sell it today you would earn a total of 523.00 from holding Ubs Small Cap or generate 27.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Ubs Small Cap
Performance |
| Timeline |
NYSE Composite and Ubs Us Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Ubs Small Cap
Pair trading matchups for Ubs Us
Pair Trading with NYSE Composite and Ubs Us
The main advantage of trading using opposite NYSE Composite and Ubs Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Ubs Us 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 Us will offset losses from the drop in Ubs Us' long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| Ubs Us vs. The Emerging Markets | Ubs Us vs. Nasdaq 100 2x Strategy | Ubs Us vs. Angel Oak Multi Strategy | Ubs Us vs. Legg Mason Partners |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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