Correlation Between UBS AG and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both UBS AG and Barclays Capital 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 AG and Barclays Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS AG London and Barclays Capital, you can compare the effects of market volatilities on UBS AG and Barclays Capital 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 AG with a short position of Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS AG and Barclays Capital.
Diversification Opportunities for UBS AG and Barclays Capital
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and Barclays is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding UBS AG London and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital and UBS AG 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 AG London are associated (or correlated) with Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of UBS AG i.e., UBS AG and Barclays Capital go up and down completely randomly.
Pair Corralation between UBS AG and Barclays Capital
If you would invest 2,555 in UBS AG London on August 30, 2024 and sell it today you would lose (14.00) from holding UBS AG London or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
UBS AG London vs. Barclays Capital
Performance |
| Timeline |
| UBS AG London |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UBS AG and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS AG and Barclays Capital
The main advantage of trading using opposite UBS AG and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS AG position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.| UBS AG vs. ETRACS Bloomberg Commodity | UBS AG vs. USCF SummerHaven Dynamic | UBS AG vs. First Trust Alternative | UBS AG vs. iShares Bloomberg Roll |
| Barclays Capital vs. First Trust Global | Barclays Capital vs. UBS AG London | Barclays Capital vs. abrdn Bloomberg All |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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