Correlation Between UBS ETF and UBS Barclays
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By analyzing existing cross correlation between UBS ETF Public and UBS Barclays Liquid, you can compare the effects of market volatilities on UBS ETF and UBS Barclays 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 UBS Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and UBS Barclays.
Diversification Opportunities for UBS ETF and UBS Barclays
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBS and UBS is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF Public and UBS Barclays Liquid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Barclays Liquid 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 Public are associated (or correlated) with UBS Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Barclays Liquid has no effect on the direction of UBS ETF i.e., UBS ETF and UBS Barclays go up and down completely randomly.
Pair Corralation between UBS ETF and UBS Barclays
Assuming the 90 days trading horizon UBS ETF is expected to generate 4.04 times less return on investment than UBS Barclays. But when comparing it to its historical volatility, UBS ETF Public is 1.27 times less risky than UBS Barclays. It trades about 0.03 of its potential returns per unit of risk. UBS Barclays Liquid is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,321 in UBS Barclays Liquid on September 12, 2024 and sell it today you would earn a total of 115.00 from holding UBS Barclays Liquid or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS ETF Public vs. UBS Barclays Liquid
Performance |
| Timeline |
| UBS ETF Public |
| UBS Barclays Liquid |
UBS ETF and UBS Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETF and UBS Barclays
The main advantage of trading using opposite UBS ETF and UBS Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, UBS Barclays 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 UBS Barclays will offset losses from the drop in UBS Barclays' long position.| UBS ETF vs. UBS Barclays Liquid | UBS ETF vs. UBS ETF SICAV | UBS ETF vs. UBS Fund Solutions | UBS ETF vs. UBS plc |
| UBS Barclays vs. UBS ETF Public | UBS Barclays vs. UBS ETF SICAV | UBS Barclays vs. UBS Fund Solutions | UBS Barclays vs. UBS 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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