Correlation Between UBS ETRACS and Fidelity Growth
Can any of the company-specific risk be diversified away by investing in both UBS ETRACS and Fidelity Growth 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 Fidelity Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETRACS and Fidelity Growth Opportunities, you can compare the effects of market volatilities on UBS ETRACS and Fidelity Growth 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 Fidelity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETRACS and Fidelity Growth.
Diversification Opportunities for UBS ETRACS and Fidelity Growth
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and Fidelity is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETRACS and Fidelity Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Growth Oppo 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 Fidelity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Growth Oppo has no effect on the direction of UBS ETRACS i.e., UBS ETRACS and Fidelity Growth go up and down completely randomly.
Pair Corralation between UBS ETRACS and Fidelity Growth
If you would invest 1,681 in UBS ETRACS on September 13, 2024 and sell it today you would earn a total of 169.90 from holding UBS ETRACS or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
UBS ETRACS vs. Fidelity Growth Opportunities
Performance |
| Timeline |
| UBS ETRACS |
| Fidelity Growth Oppo |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UBS ETRACS and Fidelity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETRACS and Fidelity Growth
The main advantage of trading using opposite UBS ETRACS and Fidelity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETRACS position performs unexpectedly, Fidelity Growth 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 Fidelity Growth will offset losses from the drop in Fidelity Growth'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 |
| Fidelity Growth vs. Fidelity Covington Trust | Fidelity Growth vs. Fidelity Real Estate | Fidelity Growth vs. Fidelity Blue Chip | Fidelity Growth vs. Fidelity Blue Chip |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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