Correlation Between 00108WAF7 and UBS Group
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By analyzing existing cross correlation between AEP TEX INC and UBS Group AG, you can compare the effects of market volatilities on 00108WAF7 and UBS Group 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 00108WAF7 with a short position of UBS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and UBS Group.
Diversification Opportunities for 00108WAF7 and UBS Group
Excellent diversification
The 3 months correlation between 00108WAF7 and UBS is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and UBS Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Group AG and 00108WAF7 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 AEP TEX INC are associated (or correlated) with UBS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Group AG has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and UBS Group go up and down completely randomly.
Pair Corralation between 00108WAF7 and UBS Group
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 70.29 times more return on investment than UBS Group. However, 00108WAF7 is 70.29 times more volatile than UBS Group AG. It trades about 0.12 of its potential returns per unit of risk. UBS Group AG is currently generating about 0.06 per unit of risk. If you would invest 7,391 in AEP TEX INC on November 9, 2024 and sell it today you would earn a total of 7.00 from holding AEP TEX INC or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.87% |
| Values | Daily Returns |
AEP TEX INC vs. UBS Group AG
Performance |
| Timeline |
| AEP TEX INC |
| UBS Group AG |
00108WAF7 and UBS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and UBS Group
The main advantage of trading using opposite 00108WAF7 and UBS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 position performs unexpectedly, UBS Group 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 Group will offset losses from the drop in UBS Group's long position.| 00108WAF7 vs. BioNTech SE | 00108WAF7 vs. Molecular Partners AG | 00108WAF7 vs. Nuvalent | 00108WAF7 vs. Regeneron Pharmaceuticals |
| UBS Group vs. Citigroup | UBS Group vs. Barclays PLC ADR | UBS Group vs. HSBC Holdings PLC | UBS Group vs. Nu Holdings |
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.
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