Correlation Between Source Markets and UBS Fund
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By analyzing existing cross correlation between Source Markets plc and UBS Fund Solutions, you can compare the effects of market volatilities on Source Markets and UBS Fund 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 Source Markets with a short position of UBS Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Source Markets and UBS Fund.
Diversification Opportunities for Source Markets and UBS Fund
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Source and UBS is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Source Markets plc and UBS Fund Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Fund Solutions and Source Markets 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 Source Markets plc are associated (or correlated) with UBS Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Fund Solutions has no effect on the direction of Source Markets i.e., Source Markets and UBS Fund go up and down completely randomly.
Pair Corralation between Source Markets and UBS Fund
Assuming the 90 days trading horizon Source Markets plc is expected to generate 1.18 times more return on investment than UBS Fund. However, Source Markets is 1.18 times more volatile than UBS Fund Solutions. It trades about 0.26 of its potential returns per unit of risk. UBS Fund Solutions is currently generating about 0.28 per unit of risk. If you would invest 52,370 in Source Markets plc on September 13, 2024 and sell it today you would earn a total of 3,260 from holding Source Markets plc or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Source Markets plc vs. UBS Fund Solutions
Performance |
| Timeline |
| Source Markets plc |
| UBS Fund Solutions |
Source Markets and UBS Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Source Markets and UBS Fund
The main advantage of trading using opposite Source Markets and UBS Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Source Markets position performs unexpectedly, UBS Fund 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 Fund will offset losses from the drop in UBS Fund's long position.| Source Markets vs. Source JPX Nikkei 400 | Source Markets vs. Source Markets plc | Source Markets vs. Source Markets plc | Source Markets vs. Source KBW NASDAQ |
| UBS Fund vs. UBS Barclays Liquid | UBS Fund vs. UBS ETF Public | UBS Fund vs. UBS ETF SICAV | UBS Fund vs. UBS Fund 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 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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