Correlation Between Ubs Money and Transamerica International
Can any of the company-specific risk be diversified away by investing in both Ubs Money and Transamerica International 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 Transamerica International 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 Transamerica International Equity, you can compare the effects of market volatilities on Ubs Money and Transamerica International 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 Transamerica International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Money and Transamerica International.
Diversification Opportunities for Ubs Money and Transamerica International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ubs and Transamerica is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Money Series and Transamerica International Equ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica International 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 Transamerica International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica International has no effect on the direction of Ubs Money i.e., Ubs Money and Transamerica International go up and down completely randomly.
Pair Corralation between Ubs Money and Transamerica International
Assuming the 90 days horizon Ubs Money is expected to generate 3.36 times less return on investment than Transamerica International. But when comparing it to its historical volatility, Ubs Money Series is 5.98 times less risky than Transamerica International. It trades about 0.13 of its potential returns per unit of risk. Transamerica International Equity is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,744 in Transamerica International Equity on August 29, 2024 and sell it today you would earn a total of 310.00 from holding Transamerica International Equity or generate 17.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubs Money Series vs. Transamerica International Equ
Performance |
| Timeline |
| Ubs Money Series |
| Transamerica International |
Ubs Money and Transamerica International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Money and Transamerica International
The main advantage of trading using opposite Ubs Money and Transamerica International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Money position performs unexpectedly, Transamerica International 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 Transamerica International will offset losses from the drop in Transamerica International's long position.| Ubs Money vs. Gabelli Convertible And | Ubs Money vs. Allianzgi Convertible Income | Ubs Money vs. Advent Claymore Convertible | Ubs Money vs. Calamos Dynamic Convertible |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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