Correlation Between Ubs Us and Ubs International
Can any of the company-specific risk be diversified away by investing in both Ubs Us and Ubs International 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 International 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 International Sustainable, you can compare the effects of market volatilities on Ubs Us and Ubs International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Us and Ubs International.
Diversification Opportunities for Ubs Us and Ubs International
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ubs and Ubs is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Allocation Fund and Ubs International Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs International has no effect on the direction of Ubs Us i.e., Ubs Us and Ubs International go up and down completely randomly.
Pair Corralation between Ubs Us and Ubs International
Assuming the 90 days horizon Ubs Allocation Fund is expected to generate 0.72 times more return on investment than Ubs International. However, Ubs Allocation Fund is 1.39 times less risky than Ubs International. It trades about 0.15 of its potential returns per unit of risk. Ubs International Sustainable is currently generating about 0.03 per unit of risk. If you would invest 5,053 in Ubs Allocation Fund on September 1, 2024 and sell it today you would earn a total of 576.00 from holding Ubs Allocation Fund or generate 11.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubs Allocation Fund vs. Ubs International Sustainable
Performance |
| Timeline |
| Ubs Allocation |
| Ubs International |
Ubs Us and Ubs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Us and Ubs International
The main advantage of trading using opposite Ubs Us and Ubs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Us position performs unexpectedly, Ubs International 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 International will offset losses from the drop in Ubs International's long position.| Ubs Us vs. Pace Smallmedium Value | Ubs Us vs. Pace International Equity | Ubs Us vs. Pace International Equity | Ubs Us vs. Ubs Allocation Fund |
| Ubs International vs. Pace Smallmedium Value | Ubs International vs. Pace International Equity | Ubs International vs. Ubs Allocation Fund | Ubs International vs. Ubs Allocation Fund |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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