Correlation Between UBS Fund and Expat Serbia
Can any of the company-specific risk be diversified away by investing in both UBS Fund and Expat Serbia 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 Fund and Expat Serbia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Fund Solutions and Expat Serbia Belex15, you can compare the effects of market volatilities on UBS Fund and Expat Serbia 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 Expat Serbia. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and Expat Serbia.
Diversification Opportunities for UBS Fund and Expat Serbia
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and Expat is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and Expat Serbia Belex15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Serbia Belex15 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 Expat Serbia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Serbia Belex15 has no effect on the direction of UBS Fund i.e., UBS Fund and Expat Serbia go up and down completely randomly.
Pair Corralation between UBS Fund and Expat Serbia
Assuming the 90 days trading horizon UBS Fund Solutions is expected to generate 0.5 times more return on investment than Expat Serbia. However, UBS Fund Solutions is 2.0 times less risky than Expat Serbia. It trades about 0.39 of its potential returns per unit of risk. Expat Serbia Belex15 is currently generating about -0.1 per unit of risk. If you would invest 4,967 in UBS Fund Solutions on September 5, 2024 and sell it today you would earn a total of 427.00 from holding UBS Fund Solutions or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
UBS Fund Solutions vs. Expat Serbia Belex15
Performance |
| Timeline |
| UBS Fund Solutions |
| Expat Serbia Belex15 |
UBS Fund and Expat Serbia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Fund and Expat Serbia
The main advantage of trading using opposite UBS Fund and Expat Serbia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, Expat Serbia 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 Expat Serbia will offset losses from the drop in Expat Serbia'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 |
| Expat Serbia vs. UBS Fund Solutions | Expat Serbia vs. Xtrackers II | Expat Serbia vs. Xtrackers Nikkei 225 | Expat Serbia vs. SPDR Gold Shares |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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