Correlation Between UBS Property and Swissinvest Real
Can any of the company-specific risk be diversified away by investing in both UBS Property and Swissinvest Real 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 UBS Property and Swissinvest Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Property and Swissinvest Real Estate, you can compare the effects of market volatilities on UBS Property and Swissinvest Real 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 UBS Property with a short position of Swissinvest Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Property and Swissinvest Real.
Diversification Opportunities for UBS Property and Swissinvest Real
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UBS and Swissinvest is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding UBS Property and Swissinvest Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swissinvest Real Estate and UBS Property 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 UBS Property are associated (or correlated) with Swissinvest Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swissinvest Real Estate has no effect on the direction of UBS Property i.e., UBS Property and Swissinvest Real go up and down completely randomly.
Pair Corralation between UBS Property and Swissinvest Real
Assuming the 90 days trading horizon UBS Property is expected to generate 0.89 times more return on investment than Swissinvest Real. However, UBS Property is 1.13 times less risky than Swissinvest Real. It trades about 0.04 of its potential returns per unit of risk. Swissinvest Real Estate is currently generating about 0.03 per unit of risk. If you would invest 6,020 in UBS Property on September 20, 2024 and sell it today you would earn a total of 1,180 from holding UBS Property or generate 19.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
UBS Property vs. Swissinvest Real Estate
Performance |
| Timeline |
| UBS Property |
| Swissinvest Real Estate |
UBS Property and Swissinvest Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Property and Swissinvest Real
The main advantage of trading using opposite UBS Property and Swissinvest Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Property position performs unexpectedly, Swissinvest Real 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 Swissinvest Real will offset losses from the drop in Swissinvest Real's long position.| UBS Property vs. SPDR Dow Jones | UBS Property vs. Baloise Holding AG | UBS Property vs. SPDR FTSE UK | UBS Property vs. Banque Cantonale du |
| Swissinvest Real vs. SF Sustainable Property | Swissinvest Real vs. CS Real Estate | Swissinvest Real vs. Procimmo Real Estate | Swissinvest Real vs. UBS Property |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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