Correlation Between UBSFund Solutions and GraniteShares
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and GraniteShares 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 UBSFund Solutions and GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBSFund Solutions Bloomberg and GraniteShares 3x Short, you can compare the effects of market volatilities on UBSFund Solutions and GraniteShares 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 UBSFund Solutions with a short position of GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and GraniteShares.
Diversification Opportunities for UBSFund Solutions and GraniteShares
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBSFund and GraniteShares is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions Bloomberg and GraniteShares 3x Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 3x Short and UBSFund Solutions 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 UBSFund Solutions Bloomberg are associated (or correlated) with GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 3x Short has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and GraniteShares go up and down completely randomly.
Pair Corralation between UBSFund Solutions and GraniteShares
Assuming the 90 days trading horizon UBSFund Solutions Bloomberg is expected to generate 0.05 times more return on investment than GraniteShares. However, UBSFund Solutions Bloomberg is 21.02 times less risky than GraniteShares. It trades about 0.19 of its potential returns per unit of risk. GraniteShares 3x Short is currently generating about -0.17 per unit of risk. If you would invest 126,725 in UBSFund Solutions Bloomberg on September 5, 2024 and sell it today you would earn a total of 850.00 from holding UBSFund Solutions Bloomberg or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBSFund Solutions Bloomberg vs. GraniteShares 3x Short
Performance |
| Timeline |
| UBSFund Solutions |
| GraniteShares 3x Short |
UBSFund Solutions and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and GraniteShares
The main advantage of trading using opposite UBSFund Solutions and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' long position.| UBSFund Solutions vs. Leverage Shares 3x | UBSFund Solutions vs. WisdomTree Natural Gas | UBSFund Solutions vs. Leverage Shares 3x | UBSFund Solutions vs. GraniteShares 3x Short |
| GraniteShares vs. Vanguard FTSE Developed | GraniteShares vs. Amundi Index Solutions | GraniteShares vs. Amundi Index Solutions | GraniteShares vs. Albion Venture Capital |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |