Correlation Between UBSFund Solutions and SP 500
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and SP 500 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 UBSFund Solutions and SP 500 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBSFund Solutions Bloomberg and SP 500 VIX, you can compare the effects of market volatilities on UBSFund Solutions and SP 500 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 UBSFund Solutions with a short position of SP 500. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and SP 500.
Diversification Opportunities for UBSFund Solutions and SP 500
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between UBSFund and VILX is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions Bloomberg and SP 500 VIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP 500 VIX and UBSFund Solutions 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 UBSFund Solutions Bloomberg are associated (or correlated) with SP 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP 500 VIX has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and SP 500 go up and down completely randomly.
Pair Corralation between UBSFund Solutions and SP 500
Assuming the 90 days trading horizon UBSFund Solutions Bloomberg is expected to under-perform the SP 500. But the etf apears to be less risky and, when comparing its historical volatility, UBSFund Solutions Bloomberg is 35.42 times less risky than SP 500. The etf trades about -0.26 of its potential returns per unit of risk. The SP 500 VIX is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 160,538 in SP 500 VIX on October 9, 2024 and sell it today you would lose (7,414) from holding SP 500 VIX or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBSFund Solutions Bloomberg vs. SP 500 VIX
Performance |
| Timeline |
| UBSFund Solutions |
| SP 500 VIX |
UBSFund Solutions and SP 500 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and SP 500
The main advantage of trading using opposite UBSFund Solutions and SP 500 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, SP 500 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 SP 500 will offset losses from the drop in SP 500's long position.| UBSFund Solutions vs. SP 500 VIX | UBSFund Solutions vs. WisdomTree Natural Gas | UBSFund Solutions vs. WisdomTree Natural Gas | UBSFund Solutions vs. Leverage Shares 2x |
| SP 500 vs. Vanguard FTSE Developed | SP 500 vs. Leverage Shares 2x | SP 500 vs. Amundi Index Solutions | SP 500 vs. Amundi Index Solutions |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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