Correlation Between UBS ETRACS and IShares
Can any of the company-specific risk be diversified away by investing in both UBS ETRACS and IShares 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 IShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETRACS and IShares, you can compare the effects of market volatilities on UBS ETRACS and IShares 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 IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETRACS and IShares.
Diversification Opportunities for UBS ETRACS and IShares
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UBS and IShares is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETRACS and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares 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 IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of UBS ETRACS i.e., UBS ETRACS and IShares go up and down completely randomly.
Pair Corralation between UBS ETRACS and IShares
If you would invest 1,710 in UBS ETRACS on September 3, 2024 and sell it today you would lose (105.00) from holding UBS ETRACS or give up 6.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
UBS ETRACS vs. IShares
Performance |
| Timeline |
| UBS ETRACS |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UBS ETRACS and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETRACS and IShares
The main advantage of trading using opposite UBS ETRACS and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETRACS position performs unexpectedly, IShares 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 IShares will offset losses from the drop in IShares' long position.| UBS ETRACS vs. Ultimus Managers Trust | UBS ETRACS vs. American Beacon Select | UBS ETRACS vs. Direxion Daily Regional | UBS ETRACS vs. Direxion Daily SP |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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