Correlation Between UBS Fund and Legal General
Can any of the company-specific risk be diversified away by investing in both UBS Fund and Legal General 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 Legal General 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 Legal General UCITS, you can compare the effects of market volatilities on UBS Fund and Legal General 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 Legal General. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and Legal General.
Diversification Opportunities for UBS Fund and Legal General
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UBS and Legal is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and Legal General UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legal General UCITS 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 Legal General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legal General UCITS has no effect on the direction of UBS Fund i.e., UBS Fund and Legal General go up and down completely randomly.
Pair Corralation between UBS Fund and Legal General
Assuming the 90 days trading horizon UBS Fund Solutions is expected to generate 0.89 times more return on investment than Legal General. However, UBS Fund Solutions is 1.12 times less risky than Legal General. It trades about 0.05 of its potential returns per unit of risk. Legal General UCITS is currently generating about 0.03 per unit of risk. If you would invest 4,254 in UBS Fund Solutions on November 5, 2024 and sell it today you would earn a total of 1,087 from holding UBS Fund Solutions or generate 25.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
UBS Fund Solutions vs. Legal General UCITS
Performance |
| Timeline |
| UBS Fund Solutions |
| Legal General UCITS |
UBS Fund and Legal General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Fund and Legal General
The main advantage of trading using opposite UBS Fund and Legal General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, Legal General 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 Legal General will offset losses from the drop in Legal General'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 |
| Legal General vs. Legal General Ucits | Legal General vs. Legal General UCITS | Legal General vs. Legal General Ucits | Legal General vs. Legal General UCITS |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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