Correlation Between Ubs Multi and Ubs International
Can any of the company-specific risk be diversified away by investing in both Ubs Multi and Ubs International 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 Multi and Ubs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Multi Income and Ubs International Sustainable, you can compare the effects of market volatilities on Ubs Multi and Ubs International 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 Multi with a short position of Ubs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Multi and Ubs International.
Diversification Opportunities for Ubs Multi and Ubs International
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ubs and Ubs is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Multi Income and Ubs International Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs International and Ubs Multi 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 Multi Income are associated (or correlated) with Ubs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs International has no effect on the direction of Ubs Multi i.e., Ubs Multi and Ubs International go up and down completely randomly.
Pair Corralation between Ubs Multi and Ubs International
Assuming the 90 days horizon Ubs Multi Income is expected to generate 0.4 times more return on investment than Ubs International. However, Ubs Multi Income is 2.49 times less risky than Ubs International. It trades about -0.03 of its potential returns per unit of risk. Ubs International Sustainable is currently generating about -0.02 per unit of risk. If you would invest 1,363 in Ubs Multi Income on September 3, 2024 and sell it today you would lose (8.00) from holding Ubs Multi Income or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubs Multi Income vs. Ubs International Sustainable
Performance |
| Timeline |
| Ubs Multi Income |
| Ubs International |
Ubs Multi and Ubs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Multi and Ubs International
The main advantage of trading using opposite Ubs Multi and Ubs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Multi position performs unexpectedly, Ubs International 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 International will offset losses from the drop in Ubs International's long position.| Ubs Multi vs. Multimanager Lifestyle Aggressive | Ubs Multi vs. Siit High Yield | Ubs Multi vs. Guggenheim High Yield | Ubs Multi vs. Gmo High Yield |
| Ubs International vs. Vy Goldman Sachs | Ubs International vs. Gabelli Gold Fund | Ubs International vs. James Balanced Golden | Ubs International vs. First Eagle Gold |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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