Correlation Between UBS Group and Private Equity
Can any of the company-specific risk be diversified away by investing in both UBS Group and Private Equity 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 Private Equity 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 Private Equity Holding, you can compare the effects of market volatilities on UBS Group and Private Equity 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 Private Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Group and Private Equity.
Diversification Opportunities for UBS Group and Private Equity
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBS and Private is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding UBS Group AG and Private Equity Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Private Equity Holding 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 Private Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Private Equity Holding has no effect on the direction of UBS Group i.e., UBS Group and Private Equity go up and down completely randomly.
Pair Corralation between UBS Group and Private Equity
Assuming the 90 days trading horizon UBS Group AG is expected to generate 0.66 times more return on investment than Private Equity. However, UBS Group AG is 1.51 times less risky than Private Equity. It trades about 0.65 of its potential returns per unit of risk. Private Equity Holding is currently generating about 0.21 per unit of risk. If you would invest 2,671 in UBS Group AG on October 21, 2024 and sell it today you would earn a total of 442.00 from holding UBS Group AG or generate 16.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS Group AG vs. Private Equity Holding
Performance |
| Timeline |
| UBS Group AG |
| Private Equity Holding |
UBS Group and Private Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Group and Private Equity
The main advantage of trading using opposite UBS Group and Private Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Group position performs unexpectedly, Private Equity 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 Private Equity will offset losses from the drop in Private Equity's long position.| UBS Group vs. Zurich Insurance Group | UBS Group vs. Novartis AG | UBS Group vs. Swiss Re AG | UBS Group vs. ABB |
| Private Equity vs. Orior AG | Private Equity vs. HIAG Immobilien Holding | Private Equity vs. Bellevue Group AG | Private Equity vs. Feintool International Holding |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |