Correlation Between CS Real and UBS Property
Can any of the company-specific risk be diversified away by investing in both CS Real and UBS Property 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 CS Real and UBS Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CS Real Estate and UBS Property, you can compare the effects of market volatilities on CS Real and UBS Property 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 CS Real with a short position of UBS Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of CS Real and UBS Property.
Diversification Opportunities for CS Real and UBS Property
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SIAT and UBS is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CS Real Estate and UBS Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Property and CS Real 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 CS Real Estate are associated (or correlated) with UBS Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Property has no effect on the direction of CS Real i.e., CS Real and UBS Property go up and down completely randomly.
Pair Corralation between CS Real and UBS Property
Assuming the 90 days trading horizon CS Real is expected to generate 1.81 times less return on investment than UBS Property. But when comparing it to its historical volatility, CS Real Estate is 1.08 times less risky than UBS Property. It trades about 0.05 of its potential returns per unit of risk. UBS Property is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,820 in UBS Property on October 30, 2024 and sell it today you would earn a total of 410.00 from holding UBS Property or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CS Real Estate vs. UBS Property
Performance |
| Timeline |
| CS Real Estate |
| UBS Property |
CS Real and UBS Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CS Real and UBS Property
The main advantage of trading using opposite CS Real and UBS Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CS Real position performs unexpectedly, UBS Property 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 Property will offset losses from the drop in UBS Property's long position.| CS Real vs. Procimmo Real Estate | CS Real vs. SPDR Dow Jones | CS Real vs. Baloise Holding AG | CS Real vs. Autoneum Holding AG |
| UBS Property vs. SF Sustainable Property | UBS Property vs. Swissinvest Real Estate | UBS Property vs. CS Real Estate | UBS Property vs. Procimmo Real Estate |
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 Stocks Directory module to find actively traded stocks across global markets.
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