Correlation Between UBS ETRACS and EGSHARES BLUE
Can any of the company-specific risk be diversified away by investing in both UBS ETRACS and EGSHARES BLUE 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 ETRACS and EGSHARES BLUE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETRACS and EGSHARES BLUE CHIP, you can compare the effects of market volatilities on UBS ETRACS and EGSHARES BLUE 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 ETRACS with a short position of EGSHARES BLUE. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETRACS and EGSHARES BLUE.
Diversification Opportunities for UBS ETRACS and EGSHARES BLUE
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and EGSHARES is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETRACS and EGSHARES BLUE CHIP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGSHARES BLUE CHIP and UBS ETRACS 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 ETRACS are associated (or correlated) with EGSHARES BLUE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGSHARES BLUE CHIP has no effect on the direction of UBS ETRACS i.e., UBS ETRACS and EGSHARES BLUE go up and down completely randomly.
Pair Corralation between UBS ETRACS and EGSHARES BLUE
Given the investment horizon of 90 days UBS ETRACS is expected to generate 7.86 times less return on investment than EGSHARES BLUE. In addition to that, UBS ETRACS is 4.16 times more volatile than EGSHARES BLUE CHIP. It trades about 0.0 of its total potential returns per unit of risk. EGSHARES BLUE CHIP is currently generating about 0.13 per unit of volatility. If you would invest 2,491 in EGSHARES BLUE CHIP on September 12, 2024 and sell it today you would earn a total of 1,054 from holding EGSHARES BLUE CHIP or generate 42.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
UBS ETRACS vs. EGSHARES BLUE CHIP
Performance |
| Timeline |
| UBS ETRACS |
| EGSHARES BLUE CHIP |
UBS ETRACS and EGSHARES BLUE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETRACS and EGSHARES BLUE
The main advantage of trading using opposite UBS ETRACS and EGSHARES BLUE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETRACS position performs unexpectedly, EGSHARES BLUE 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 EGSHARES BLUE will offset losses from the drop in EGSHARES BLUE's long position.| UBS ETRACS vs. Ultimus Managers Trust | UBS ETRACS vs. Direxion Daily SP | UBS ETRACS vs. EA Series Trust | UBS ETRACS vs. Global X MLP |
| EGSHARES BLUE vs. iShares Factors Growth | EGSHARES BLUE vs. Absolute Core Strategy | EGSHARES BLUE vs. iShares ESG Advanced | EGSHARES BLUE vs. PIMCO RAFI Dynamic |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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