Correlation Between UBS Fund and Source Markets
Can any of the company-specific risk be diversified away by investing in both UBS Fund and Source Markets 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 Source Markets 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 Source Markets plc, you can compare the effects of market volatilities on UBS Fund and Source Markets 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 Source Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and Source Markets.
Diversification Opportunities for UBS Fund and Source Markets
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UBS and Source is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and Source Markets plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Source Markets plc 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 Source Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Source Markets plc has no effect on the direction of UBS Fund i.e., UBS Fund and Source Markets go up and down completely randomly.
Pair Corralation between UBS Fund and Source Markets
Assuming the 90 days trading horizon UBS Fund Solutions is expected to generate 0.64 times more return on investment than Source Markets. However, UBS Fund Solutions is 1.55 times less risky than Source Markets. It trades about 0.28 of its potential returns per unit of risk. Source Markets plc is currently generating about -0.02 per unit of risk. If you would invest 4,967 in UBS Fund Solutions on September 4, 2024 and sell it today you would earn a total of 244.00 from holding UBS Fund Solutions or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
UBS Fund Solutions vs. Source Markets plc
Performance |
| Timeline |
| UBS Fund Solutions |
| Source Markets plc |
UBS Fund and Source Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Fund and Source Markets
The main advantage of trading using opposite UBS Fund and Source Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, Source Markets 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 Source Markets will offset losses from the drop in Source Markets' 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 |
| Source Markets vs. Source JPX Nikkei 400 | Source Markets vs. Source Markets plc | Source Markets vs. Source Markets plc | Source Markets vs. Source KBW NASDAQ |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |