Correlation Between Ubs Us and First Trust
Can any of the company-specific risk be diversified away by investing in both Ubs Us and First Trust 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 First Trust 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 First Trust Mortgage, you can compare the effects of market volatilities on Ubs Us and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Us and First Trust.
Diversification Opportunities for Ubs Us and First Trust
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ubs and First is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Allocation Fund and First Trust Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Mortgage 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Mortgage has no effect on the direction of Ubs Us i.e., Ubs Us and First Trust go up and down completely randomly.
Pair Corralation between Ubs Us and First Trust
Assuming the 90 days horizon Ubs Allocation Fund is expected to generate 0.83 times more return on investment than First Trust. However, Ubs Allocation Fund is 1.21 times less risky than First Trust. It trades about 0.19 of its potential returns per unit of risk. First Trust Mortgage is currently generating about 0.13 per unit of risk. If you would invest 5,296 in Ubs Allocation Fund on August 30, 2024 and sell it today you would earn a total of 143.00 from holding Ubs Allocation Fund or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubs Allocation Fund vs. First Trust Mortgage
Performance |
| Timeline |
| Ubs Allocation |
| First Trust Mortgage |
Ubs Us and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Us and First Trust
The main advantage of trading using opposite Ubs Us and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Us position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| Ubs Us vs. Evaluator Conservative Rms | Ubs Us vs. Harbor Diversified International | Ubs Us vs. Calvert Conservative Allocation | Ubs Us vs. Pgim Conservative Retirement |
| First Trust vs. First Trust Senior | First Trust vs. Western Asset Global | First Trust vs. Western Asset Global | First Trust vs. BlackRock Floating Rate |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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