Correlation Between Ubs Multi and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Ubs Multi and Multimanager Lifestyle 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 Multimanager Lifestyle 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 Multimanager Lifestyle Aggressive, you can compare the effects of market volatilities on Ubs Multi and Multimanager Lifestyle 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 Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Multi and Multimanager Lifestyle.
Diversification Opportunities for Ubs Multi and Multimanager Lifestyle
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ubs and MULTIMANAGER is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Multi Income and Multimanager Lifestyle Aggress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle 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 Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Ubs Multi i.e., Ubs Multi and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Ubs Multi and Multimanager Lifestyle
Assuming the 90 days horizon Ubs Multi is expected to generate 2.6 times less return on investment than Multimanager Lifestyle. But when comparing it to its historical volatility, Ubs Multi Income is 2.27 times less risky than Multimanager Lifestyle. It trades about 0.11 of its potential returns per unit of risk. Multimanager Lifestyle Aggressive is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,194 in Multimanager Lifestyle Aggressive on September 4, 2024 and sell it today you would earn a total of 365.00 from holding Multimanager Lifestyle Aggressive or generate 30.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.31% |
| Values | Daily Returns |
Ubs Multi Income vs. Multimanager Lifestyle Aggress
Performance |
| Timeline |
| Ubs Multi Income |
| Multimanager Lifestyle |
Ubs Multi and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubs Multi and Multimanager Lifestyle
The main advantage of trading using opposite Ubs Multi and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Multi position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.| Ubs Multi vs. Artisan High Income | Ubs Multi vs. California Bond Fund | Ubs Multi vs. Limited Term Tax | Ubs Multi vs. Maryland Tax Free Bond |
| Multimanager Lifestyle vs. Needham Aggressive Growth | Multimanager Lifestyle vs. Calvert High Yield | Multimanager Lifestyle vs. Siit High Yield | Multimanager Lifestyle vs. Victory High Income |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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