Correlation Between California Bond and Ubs Us
Can any of the company-specific risk be diversified away by investing in both California Bond and Ubs Us 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 California Bond and Ubs Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California Bond Fund and Ubs Allocation Fund, you can compare the effects of market volatilities on California Bond and Ubs Us 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 California Bond with a short position of Ubs Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Ubs Us.
Diversification Opportunities for California Bond and Ubs Us
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between California and Ubs is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Ubs Allocation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Allocation and California Bond 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 California Bond Fund are associated (or correlated) with Ubs Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Allocation has no effect on the direction of California Bond i.e., California Bond and Ubs Us go up and down completely randomly.
Pair Corralation between California Bond and Ubs Us
Assuming the 90 days horizon California Bond is expected to generate 1.12 times less return on investment than Ubs Us. But when comparing it to its historical volatility, California Bond Fund is 1.63 times less risky than Ubs Us. It trades about 0.22 of its potential returns per unit of risk. Ubs Allocation Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,437 in Ubs Allocation Fund on August 24, 2024 and sell it today you would earn a total of 111.00 from holding Ubs Allocation Fund or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
California Bond Fund vs. Ubs Allocation Fund
Performance |
| Timeline |
| California Bond |
| Ubs Allocation |
California Bond and Ubs Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Ubs Us
The main advantage of trading using opposite California Bond and Ubs Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond position performs unexpectedly, Ubs Us 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 Us will offset losses from the drop in Ubs Us' long position.| California Bond vs. Vanguard California Long Term | California Bond vs. HUMANA INC | California Bond vs. Aquagold International | California Bond vs. Barloworld Ltd ADR |
| Ubs Us vs. Mirova Global Green | Ubs Us vs. Rationalpier 88 Convertible | Ubs Us vs. California Bond Fund | Ubs Us vs. Barings Active Short |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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