Correlation Between Ubs Us and Ubs Us

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Can any of the company-specific risk be diversified away by investing in both Ubs Us 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 Ubs Us and Ubs Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Allocation Fund and Ubs Small Cap, you can compare the effects of market volatilities on Ubs Us 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 Ubs Us with a short position of Ubs Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Us and Ubs Us.

Diversification Opportunities for Ubs Us and Ubs Us

UbsUbsDiversified AwayUbsUbsDiversified Away100%
0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Ubs and Ubs is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Allocation Fund 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 Ubs Us 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 Ubs Allocation Fund 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 Ubs Us i.e., Ubs Us and Ubs Us go up and down completely randomly.

Pair Corralation between Ubs Us and Ubs Us

Assuming the 90 days horizon Ubs Allocation Fund is expected to generate 0.45 times more return on investment than Ubs Us. However, Ubs Allocation Fund is 2.21 times less risky than Ubs Us. It trades about -0.17 of its potential returns per unit of risk. Ubs Small Cap is currently generating about -0.42 per unit of risk. If you would invest  4,996  in Ubs Allocation Fund on November 30, 2024 and sell it today you would lose (101.00) from holding Ubs Allocation Fund or give up 2.02% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Ubs Allocation Fund  vs.  Ubs Small Cap

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -505
JavaScript chart by amCharts 3.21.15PWTAX BISCX
       Timeline  
Ubs Allocation 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Ubs Allocation Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb495051525354
Ubs Small Cap 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Ubs Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb20.52121.52222.52323.52424.5

Ubs Us and Ubs Us Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.73-1.31-0.89-0.47-0.06470.260.681.11.52 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.15PWTAX BISCX
       Returns  

Pair Trading with Ubs Us and Ubs Us

The main advantage of trading using opposite Ubs Us and Ubs Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Us 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.
The idea behind Ubs Allocation Fund and Ubs Small Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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