Correlation Between UBS Group and Feintool International
Can any of the company-specific risk be diversified away by investing in both UBS Group and Feintool 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 Group and Feintool International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Group AG and Feintool International Holding, you can compare the effects of market volatilities on UBS Group and Feintool 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 Group with a short position of Feintool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Group and Feintool International.
Diversification Opportunities for UBS Group and Feintool International
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and Feintool is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding UBS Group AG and Feintool International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feintool International and UBS Group 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 Group AG are associated (or correlated) with Feintool International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feintool International has no effect on the direction of UBS Group i.e., UBS Group and Feintool International go up and down completely randomly.
Pair Corralation between UBS Group and Feintool International
Assuming the 90 days trading horizon UBS Group AG is expected to generate 0.99 times more return on investment than Feintool International. However, UBS Group AG is 1.01 times less risky than Feintool International. It trades about 0.01 of its potential returns per unit of risk. Feintool International Holding is currently generating about -0.05 per unit of risk. If you would invest 2,846 in UBS Group AG on September 1, 2024 and sell it today you would earn a total of 2.00 from holding UBS Group AG or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS Group AG vs. Feintool International Holding
Performance |
| Timeline |
| UBS Group AG |
| Feintool International |
UBS Group and Feintool International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Group and Feintool International
The main advantage of trading using opposite UBS Group and Feintool International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Group position performs unexpectedly, Feintool 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 Feintool International will offset losses from the drop in Feintool International's long position.| UBS Group vs. Zurich Insurance Group | UBS Group vs. Novartis AG | UBS Group vs. Swiss Re AG | UBS Group vs. ABB |
| Feintool International vs. OC Oerlikon Corp | Feintool International vs. Helvetia Holding AG | Feintool International vs. Swiss Life Holding | Feintool International vs. VAT Group AG |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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