Correlation Between UBSFund Solutions and SPDR Barclays
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and SPDR Barclays 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 SPDR Barclays 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 SPDR Barclays 10, you can compare the effects of market volatilities on UBSFund Solutions and SPDR Barclays 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 SPDR Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and SPDR Barclays.
Diversification Opportunities for UBSFund Solutions and SPDR Barclays
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UBSFund and SPDR is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions Bloomberg and SPDR Barclays 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Barclays 10 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 SPDR Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Barclays 10 has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and SPDR Barclays go up and down completely randomly.
Pair Corralation between UBSFund Solutions and SPDR Barclays
Assuming the 90 days trading horizon UBSFund Solutions is expected to generate 2.54 times less return on investment than SPDR Barclays. But when comparing it to its historical volatility, UBSFund Solutions Bloomberg is 6.18 times less risky than SPDR Barclays. It trades about 0.21 of its potential returns per unit of risk. SPDR Barclays 10 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,203 in SPDR Barclays 10 on September 1, 2024 and sell it today you would earn a total of 35.00 from holding SPDR Barclays 10 or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBSFund Solutions Bloomberg vs. SPDR Barclays 10
Performance |
| Timeline |
| UBSFund Solutions |
| SPDR Barclays 10 |
UBSFund Solutions and SPDR Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and SPDR Barclays
The main advantage of trading using opposite UBSFund Solutions and SPDR Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, SPDR Barclays 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 SPDR Barclays will offset losses from the drop in SPDR Barclays' long position.| UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions JP |
| SPDR Barclays vs. SPDR Dow Jones | SPDR Barclays vs. SPDR SP Dividend | SPDR Barclays vs. SPDR Barclays Euro | SPDR Barclays vs. SPDR SP Consumer |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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