Correlation Between UBS Fund and Leverage Shares
Specify exactly 2 symbols:
By analyzing existing cross correlation between UBS Fund Solutions and Leverage Shares 3x, you can compare the effects of market volatilities on UBS Fund and Leverage Shares 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 Fund with a short position of Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and Leverage Shares.
Diversification Opportunities for UBS Fund and Leverage Shares
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBS and Leverage is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and Leverage Shares 3x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 3x and UBS Fund 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 Fund Solutions are associated (or correlated) with Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 3x has no effect on the direction of UBS Fund i.e., UBS Fund and Leverage Shares go up and down completely randomly.
Pair Corralation between UBS Fund and Leverage Shares
Assuming the 90 days trading horizon UBS Fund is expected to generate 4.52 times less return on investment than Leverage Shares. But when comparing it to its historical volatility, UBS Fund Solutions is 1.72 times less risky than Leverage Shares. It trades about 0.03 of its potential returns per unit of risk. Leverage Shares 3x is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 362.00 in Leverage Shares 3x on September 3, 2024 and sell it today you would earn a total of 81.00 from holding Leverage Shares 3x or generate 22.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS Fund Solutions vs. Leverage Shares 3x
Performance |
| Timeline |
| UBS Fund Solutions |
| Leverage Shares 3x |
UBS Fund and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Fund and Leverage Shares
The main advantage of trading using opposite UBS Fund and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' long position.| UBS Fund vs. UBS Barclays Liquid | UBS Fund vs. UBS ETF Public | UBS Fund vs. UBS ETF SICAV | UBS Fund vs. UBS Fund Solutions |
| Leverage Shares vs. UBS Fund Solutions | Leverage Shares vs. Xtrackers II | Leverage Shares vs. Xtrackers Nikkei 225 | Leverage Shares vs. iShares VII PLC |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |