Correlation Between Cref Money and Ubs Money
Can any of the company-specific risk be diversified away by investing in both Cref Money and Ubs Money 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 Cref Money and Ubs Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Ubs Money Series, you can compare the effects of market volatilities on Cref Money and Ubs Money 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 Cref Money with a short position of Ubs Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Ubs Money.
Diversification Opportunities for Cref Money and Ubs Money
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cref and Ubs is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Ubs Money Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Money Series and Cref Money 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 Cref Money Market are associated (or correlated) with Ubs Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Money Series has no effect on the direction of Cref Money i.e., Cref Money and Ubs Money go up and down completely randomly.
Pair Corralation between Cref Money and Ubs Money
Assuming the 90 days trading horizon Cref Money Market is expected to generate 0.17 times more return on investment than Ubs Money. However, Cref Money Market is 5.81 times less risky than Ubs Money. It trades about 0.94 of its potential returns per unit of risk. Ubs Money Series is currently generating about 0.12 per unit of risk. If you would invest 2,850 in Cref Money Market on August 28, 2024 and sell it today you would earn a total of 120.00 from holding Cref Money Market or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Cref Money Market vs. Ubs Money Series
Performance |
| Timeline |
| Cref Money Market |
| Ubs Money Series |
Cref Money and Ubs Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Ubs Money
The main advantage of trading using opposite Cref Money and Ubs Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, Ubs Money 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 Money will offset losses from the drop in Ubs Money's long position.| Cref Money vs. Vanguard Global Credit | Cref Money vs. Ms Global Fixed | Cref Money vs. T Rowe Price | Cref Money vs. Chartwell Short Duration |
| Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard 500 Index | Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard Total Stock |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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