Correlation Between Ubs Money and Western Asset
Can any of the company-specific risk be diversified away by investing in both Ubs Money and Western Asset 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 Western Asset 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 Western Asset E, you can compare the effects of market volatilities on Ubs Money and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Money and Western Asset.
Diversification Opportunities for Ubs Money and Western Asset
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ubs and Western is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Money Series and Western Asset E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset E 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset E has no effect on the direction of Ubs Money i.e., Ubs Money and Western Asset go up and down completely randomly.
Pair Corralation between Ubs Money and Western Asset
If you would invest 100.00 in Ubs Money Series on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Ubs Money Series or generate 0.0% 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. Western Asset E
Performance |
Timeline |
Ubs Money Series |
Western Asset E |
Ubs Money and Western Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ubs Money and Western Asset
The main advantage of trading using opposite Ubs Money and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Money position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
Western Asset vs. Dreyfus Institutional Reserves | Western Asset vs. Ubs Money Series | Western Asset vs. Pioneer Money Market | Western Asset vs. Ashmore Emerging Markets |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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