Correlation Between Ubs Ultra and Nasdaq 100
Can any of the company-specific risk be diversified away by investing in both Ubs Ultra and Nasdaq 100 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 Ultra and Nasdaq 100 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Ultra Short and Nasdaq 100 Index Fund, you can compare the effects of market volatilities on Ubs Ultra and Nasdaq 100 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 Ultra with a short position of Nasdaq 100. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Ultra and Nasdaq 100.
Diversification Opportunities for Ubs Ultra and Nasdaq 100
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ubs and Nasdaq is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Ultra Short and Nasdaq 100 Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 Index and Ubs Ultra 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 Ultra Short are associated (or correlated) with Nasdaq 100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 Index has no effect on the direction of Ubs Ultra i.e., Ubs Ultra and Nasdaq 100 go up and down completely randomly.
Pair Corralation between Ubs Ultra and Nasdaq 100
If you would invest 4,998 in Nasdaq 100 Index Fund on September 1, 2024 and sell it today you would earn a total of 264.00 from holding Nasdaq 100 Index Fund or generate 5.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubs Ultra Short vs. Nasdaq 100 Index Fund
Performance |
| Timeline |
| Ubs Ultra Short |
| Nasdaq 100 Index |
Ubs Ultra and Nasdaq 100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Ultra and Nasdaq 100
The main advantage of trading using opposite Ubs Ultra and Nasdaq 100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Ultra position performs unexpectedly, Nasdaq 100 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 Nasdaq 100 will offset losses from the drop in Nasdaq 100's long position.| Ubs Ultra vs. Pace Smallmedium Value | Ubs Ultra vs. Pace International Equity | Ubs Ultra vs. Pace International Equity | Ubs Ultra vs. Ubs Allocation Fund |
| Nasdaq 100 vs. Alliancebernstein National Municipal | Nasdaq 100 vs. Nuveen Arizona Municipal | Nasdaq 100 vs. Bbh Intermediate Municipal | Nasdaq 100 vs. Old Westbury Municipal |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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