Correlation Between Energy Services and Ubs Emerging
Can any of the company-specific risk be diversified away by investing in both Energy Services and Ubs Emerging 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 Energy Services and Ubs Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Services Fund and Ubs Emerging Markets, you can compare the effects of market volatilities on Energy Services and Ubs Emerging 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 Energy Services with a short position of Ubs Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Services and Ubs Emerging.
Diversification Opportunities for Energy Services and Ubs Emerging
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ENERGY and Ubs is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Energy Services Fund and Ubs Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Emerging Markets and Energy Services 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 Energy Services Fund are associated (or correlated) with Ubs Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Emerging Markets has no effect on the direction of Energy Services i.e., Energy Services and Ubs Emerging go up and down completely randomly.
Pair Corralation between Energy Services and Ubs Emerging
Assuming the 90 days horizon Energy Services Fund is expected to generate 1.81 times more return on investment than Ubs Emerging. However, Energy Services is 1.81 times more volatile than Ubs Emerging Markets. It trades about 0.0 of its potential returns per unit of risk. Ubs Emerging Markets is currently generating about -0.01 per unit of risk. If you would invest 25,072 in Energy Services Fund on September 1, 2024 and sell it today you would lose (445.00) from holding Energy Services Fund or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Energy Services Fund vs. Ubs Emerging Markets
Performance |
| Timeline |
| Energy Services |
| Ubs Emerging Markets |
Energy Services and Ubs Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Services and Ubs Emerging
The main advantage of trading using opposite Energy Services and Ubs Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Services position performs unexpectedly, Ubs Emerging 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 Emerging will offset losses from the drop in Ubs Emerging's long position.| Energy Services vs. Basic Materials Fund | Energy Services vs. Electronics Fund Investor | Energy Services vs. Health Care Fund | Energy Services vs. Precious Metals Fund |
| Ubs Emerging vs. Pace Smallmedium Value | Ubs Emerging vs. Pace International Equity | Ubs Emerging vs. Pace International Equity | Ubs Emerging 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |