Correlation Between Ubs Allocation and American Funds
Can any of the company-specific risk be diversified away by investing in both Ubs Allocation and American Funds 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 Allocation and American Funds 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 American Funds American, you can compare the effects of market volatilities on Ubs Allocation and American Funds 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 Allocation with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Allocation and American Funds.
Diversification Opportunities for Ubs Allocation and American Funds
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ubs and American is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Allocation Fund and American Funds American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds American and Ubs Allocation 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds American has no effect on the direction of Ubs Allocation i.e., Ubs Allocation and American Funds go up and down completely randomly.
Pair Corralation between Ubs Allocation and American Funds
Assuming the 90 days horizon Ubs Allocation Fund is expected to generate 1.12 times more return on investment than American Funds. However, Ubs Allocation is 1.12 times more volatile than American Funds American. It trades about 0.4 of its potential returns per unit of risk. American Funds American is currently generating about 0.3 per unit of risk. If you would invest 5,386 in Ubs Allocation Fund on September 3, 2024 and sell it today you would earn a total of 243.00 from holding Ubs Allocation Fund or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubs Allocation Fund vs. American Funds American
Performance |
| Timeline |
| Ubs Allocation |
| American Funds American |
Ubs Allocation and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Allocation and American Funds
The main advantage of trading using opposite Ubs Allocation and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Allocation position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Ubs Allocation vs. American Funds American | Ubs Allocation vs. American Funds American | Ubs Allocation vs. American Balanced | Ubs Allocation vs. American Balanced Fund |
| American Funds vs. Sarofim Equity | American Funds vs. Rbc Global Equity | American Funds vs. Multimedia Portfolio Multimedia | American Funds vs. Ab Select 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |