Correlation Between UBS Fund and Lyxor Fed
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By analyzing existing cross correlation between UBS Fund Solutions and Lyxor Fed Funds, you can compare the effects of market volatilities on UBS Fund and Lyxor Fed 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 Lyxor Fed. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and Lyxor Fed.
Diversification Opportunities for UBS Fund and Lyxor Fed
Average diversification
The 3 months correlation between UBS and Lyxor is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and Lyxor Fed Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor Fed Funds 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 Lyxor Fed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor Fed Funds has no effect on the direction of UBS Fund i.e., UBS Fund and Lyxor Fed go up and down completely randomly.
Pair Corralation between UBS Fund and Lyxor Fed
Assuming the 90 days trading horizon UBS Fund Solutions is expected to generate 1.45 times more return on investment than Lyxor Fed. However, UBS Fund is 1.45 times more volatile than Lyxor Fed Funds. It trades about 0.24 of its potential returns per unit of risk. Lyxor Fed Funds is currently generating about 0.29 per unit of risk. If you would invest 4,968 in UBS Fund Solutions on August 27, 2024 and sell it today you would earn a total of 212.00 from holding UBS Fund Solutions or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS Fund Solutions vs. Lyxor Fed Funds
Performance |
| Timeline |
| UBS Fund Solutions |
| Lyxor Fed Funds |
UBS Fund and Lyxor Fed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Fund and Lyxor Fed
The main advantage of trading using opposite UBS Fund and Lyxor Fed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, Lyxor Fed 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 Lyxor Fed will offset losses from the drop in Lyxor Fed's 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 |
| Lyxor Fed vs. UBS Fund Solutions | Lyxor Fed vs. Xtrackers II | Lyxor Fed vs. Xtrackers Nikkei 225 | Lyxor Fed 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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