Correlation Between UBS ETF and Xtrackers Nikkei
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By analyzing existing cross correlation between UBS ETF SICAV and Xtrackers Nikkei 225, you can compare the effects of market volatilities on UBS ETF and Xtrackers Nikkei 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 ETF with a short position of Xtrackers Nikkei. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and Xtrackers Nikkei.
Diversification Opportunities for UBS ETF and Xtrackers Nikkei
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UBS and Xtrackers is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF SICAV and Xtrackers Nikkei 225 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Nikkei 225 and UBS ETF 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 ETF SICAV are associated (or correlated) with Xtrackers Nikkei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Nikkei 225 has no effect on the direction of UBS ETF i.e., UBS ETF and Xtrackers Nikkei go up and down completely randomly.
Pair Corralation between UBS ETF and Xtrackers Nikkei
Assuming the 90 days trading horizon UBS ETF is expected to generate 1.71 times less return on investment than Xtrackers Nikkei. But when comparing it to its historical volatility, UBS ETF SICAV is 1.5 times less risky than Xtrackers Nikkei. It trades about 0.05 of its potential returns per unit of risk. Xtrackers Nikkei 225 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,915 in Xtrackers Nikkei 225 on August 31, 2024 and sell it today you would earn a total of 555.00 from holding Xtrackers Nikkei 225 or generate 28.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS ETF SICAV vs. Xtrackers Nikkei 225
Performance |
| Timeline |
| UBS ETF SICAV |
| Xtrackers Nikkei 225 |
UBS ETF and Xtrackers Nikkei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETF and Xtrackers Nikkei
The main advantage of trading using opposite UBS ETF and Xtrackers Nikkei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, Xtrackers Nikkei 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 Xtrackers Nikkei will offset losses from the drop in Xtrackers Nikkei's long position.| UBS ETF vs. Xtrackers Nikkei 225 | UBS ETF vs. iShares VII PLC | UBS ETF vs. NMI Holdings | UBS ETF vs. SIVERS SEMICONDUCTORS AB |
| Xtrackers Nikkei vs. Xtrackers II Global | Xtrackers Nikkei vs. Xtrackers FTSE | Xtrackers Nikkei vs. Xtrackers SP 500 | Xtrackers Nikkei vs. Xtrackers MSCI |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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