Correlation Between UBS ETRACS and NKEQ
Can any of the company-specific risk be diversified away by investing in both UBS ETRACS and NKEQ 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 NKEQ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETRACS and NKEQ, you can compare the effects of market volatilities on UBS ETRACS and NKEQ 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 NKEQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETRACS and NKEQ.
Diversification Opportunities for UBS ETRACS and NKEQ
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and NKEQ is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETRACS and NKEQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NKEQ 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 NKEQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NKEQ has no effect on the direction of UBS ETRACS i.e., UBS ETRACS and NKEQ go up and down completely randomly.
Pair Corralation between UBS ETRACS and NKEQ
If you would invest 1,650 in UBS ETRACS on September 12, 2024 and sell it today you would earn a total of 224.00 from holding UBS ETRACS or generate 13.58% 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. NKEQ
Performance |
| Timeline |
| UBS ETRACS |
| NKEQ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UBS ETRACS and NKEQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETRACS and NKEQ
The main advantage of trading using opposite UBS ETRACS and NKEQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETRACS position performs unexpectedly, NKEQ 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 NKEQ will offset losses from the drop in NKEQ'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 |
| NKEQ vs. ProShares UltraShort MSCI | NKEQ vs. ProShares UltraShort MSCI | NKEQ vs. ProShares UltraShort Euro | NKEQ vs. ProShares UltraShort MSCI |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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