Correlation Between UBS Plc and Dow Jones
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By analyzing existing cross correlation between UBS plc and Dow Jones Industrial, you can compare the effects of market volatilities on UBS Plc and Dow Jones 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 Plc with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Plc and Dow Jones.
Diversification Opportunities for UBS Plc and Dow Jones
Almost no diversification
The 3 months correlation between UBS and Dow is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding UBS plc and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and UBS Plc 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 plc are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of UBS Plc i.e., UBS Plc and Dow Jones go up and down completely randomly.
Pair Corralation between UBS Plc and Dow Jones
Assuming the 90 days trading horizon UBS plc is expected to generate 1.09 times more return on investment than Dow Jones. However, UBS Plc is 1.09 times more volatile than Dow Jones Industrial. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 6,125 in UBS plc on September 3, 2024 and sell it today you would earn a total of 3,119 from holding UBS plc or generate 50.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.02% |
| Values | Daily Returns |
UBS plc vs. Dow Jones Industrial
Performance |
| Timeline |
UBS Plc and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
UBS plc
Pair trading matchups for UBS Plc
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with UBS Plc and Dow Jones
The main advantage of trading using opposite UBS Plc and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Plc position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| UBS Plc vs. UBS Barclays Liquid | UBS Plc vs. UBS ETF Public | UBS Plc vs. UBS ETF SICAV | UBS Plc vs. UBS Fund Solutions |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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