Correlation Between UBS Fund and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both UBS Fund and SSgA SPDR 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 SSgA SPDR 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 SSgA SPDR ETFs, you can compare the effects of market volatilities on UBS Fund and SSgA SPDR 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 SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and SSgA SPDR.
Diversification Opportunities for UBS Fund and SSgA SPDR
Very weak diversification
The 3 months correlation between UBS and SSgA is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs 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 SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of UBS Fund i.e., UBS Fund and SSgA SPDR go up and down completely randomly.
Pair Corralation between UBS Fund and SSgA SPDR
Assuming the 90 days trading horizon UBS Fund Solutions is expected to generate 2.32 times more return on investment than SSgA SPDR. However, UBS Fund is 2.32 times more volatile than SSgA SPDR ETFs. It trades about 0.28 of its potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.35 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS Fund Solutions vs. SSgA SPDR ETFs
Performance |
| Timeline |
| UBS Fund Solutions |
| SSgA SPDR ETFs |
UBS Fund and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Fund and SSgA SPDR
The main advantage of trading using opposite UBS Fund and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR'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 |
| SSgA SPDR vs. UBS Fund Solutions | SSgA SPDR vs. Xtrackers II | SSgA SPDR vs. Xtrackers Nikkei 225 | SSgA SPDR 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |