Correlation Between Ubs Us and Otter Creek
Can any of the company-specific risk be diversified away by investing in both Ubs Us and Otter Creek 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 Otter Creek 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 Otter Creek Longshort, you can compare the effects of market volatilities on Ubs Us and Otter Creek 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 Otter Creek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Us and Otter Creek.
Diversification Opportunities for Ubs Us and Otter Creek
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ubs and Otter is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Allocation Fund and Otter Creek Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otter Creek Longshort 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 Otter Creek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otter Creek Longshort has no effect on the direction of Ubs Us i.e., Ubs Us and Otter Creek go up and down completely randomly.
Pair Corralation between Ubs Us and Otter Creek
Assuming the 90 days horizon Ubs Allocation Fund is expected to generate 0.73 times more return on investment than Otter Creek. However, Ubs Allocation Fund is 1.37 times less risky than Otter Creek. It trades about 0.15 of its potential returns per unit of risk. Otter Creek Longshort is currently generating about 0.09 per unit of risk. If you would invest 4,906 in Ubs Allocation Fund on September 1, 2024 and sell it today you would earn a total of 552.00 from holding Ubs Allocation Fund or generate 11.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubs Allocation Fund vs. Otter Creek Longshort
Performance |
| Timeline |
| Ubs Allocation |
| Otter Creek Longshort |
Ubs Us and Otter Creek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Us and Otter Creek
The main advantage of trading using opposite Ubs Us and Otter Creek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Us position performs unexpectedly, Otter Creek 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 Otter Creek will offset losses from the drop in Otter Creek's long position.| Ubs Us vs. Ab All Market | Ubs Us vs. Aqr Long Short Equity | Ubs Us vs. Harbor Diversified International | Ubs Us vs. Goldman Sachs Emerging |
| Otter Creek vs. Boston Partners Global | Otter Creek vs. Asg Managed Futures | Otter Creek vs. Pimco Trends Managed | Otter Creek vs. Aqr Long Short Equity |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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