Correlation Between Ubs Money and Ab Municipal
Can any of the company-specific risk be diversified away by investing in both Ubs Money and Ab Municipal 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 Money and Ab Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Money Series and Ab Municipal Bond, you can compare the effects of market volatilities on Ubs Money and Ab Municipal 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 Money with a short position of Ab Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Money and Ab Municipal.
Diversification Opportunities for Ubs Money and Ab Municipal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ubs and AUNTX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Money Series and Ab Municipal Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Municipal Bond and Ubs Money 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 Money Series are associated (or correlated) with Ab Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Municipal Bond has no effect on the direction of Ubs Money i.e., Ubs Money and Ab Municipal go up and down completely randomly.
Pair Corralation between Ubs Money and Ab Municipal
Assuming the 90 days horizon Ubs Money Series is expected to generate 7.54 times more return on investment than Ab Municipal. However, Ubs Money is 7.54 times more volatile than Ab Municipal Bond. It trades about 0.02 of its potential returns per unit of risk. Ab Municipal Bond is currently generating about 0.1 per unit of risk. If you would invest 91.00 in Ubs Money Series on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Ubs Money Series or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.6% |
| Values | Daily Returns |
Ubs Money Series vs. Ab Municipal Bond
Performance |
| Timeline |
| Ubs Money Series |
| Ab Municipal Bond |
Ubs Money and Ab Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Money and Ab Municipal
The main advantage of trading using opposite Ubs Money and Ab Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Money position performs unexpectedly, Ab Municipal 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 Ab Municipal will offset losses from the drop in Ab Municipal's long position.| Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard 500 Index | Ubs Money vs. Vanguard Total Stock | Ubs Money vs. Vanguard Total Stock |
| Ab Municipal vs. Aig Government Money | Ab Municipal vs. Franklin Government Money | Ab Municipal vs. Elfun Government Money | Ab Municipal vs. Ubs Money Series |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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