Correlation Between UBS ETRACS and Advisor Managed
Can any of the company-specific risk be diversified away by investing in both UBS ETRACS and Advisor Managed 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 Advisor Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETRACS and Advisor Managed Portfolios, you can compare the effects of market volatilities on UBS ETRACS and Advisor Managed 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 Advisor Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETRACS and Advisor Managed.
Diversification Opportunities for UBS ETRACS and Advisor Managed
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UBS and Advisor is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETRACS and Advisor Managed Portfolios in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advisor Managed Port 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 Advisor Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advisor Managed Port has no effect on the direction of UBS ETRACS i.e., UBS ETRACS and Advisor Managed go up and down completely randomly.
Pair Corralation between UBS ETRACS and Advisor Managed
Given the investment horizon of 90 days UBS ETRACS is expected to under-perform the Advisor Managed. In addition to that, UBS ETRACS is 2.08 times more volatile than Advisor Managed Portfolios. It trades about -0.16 of its total potential returns per unit of risk. Advisor Managed Portfolios is currently generating about 0.39 per unit of volatility. If you would invest 2,691 in Advisor Managed Portfolios on September 4, 2024 and sell it today you would earn a total of 387.00 from holding Advisor Managed Portfolios or generate 14.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS ETRACS vs. Advisor Managed Portfolios
Performance |
| Timeline |
| UBS ETRACS |
| Advisor Managed Port |
UBS ETRACS and Advisor Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETRACS and Advisor Managed
The main advantage of trading using opposite UBS ETRACS and Advisor Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETRACS position performs unexpectedly, Advisor Managed 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 Advisor Managed will offset losses from the drop in Advisor Managed's long position.| UBS ETRACS vs. ProShares UltraShort Bloomberg | UBS ETRACS vs. ProShares UltraShort Silver | UBS ETRACS vs. DB Gold Double | UBS ETRACS vs. MicroSectors Gold 3X |
| Advisor Managed vs. FT Vest Equity | Advisor Managed vs. Northern Lights | Advisor Managed vs. Dimensional International High | Advisor Managed vs. JPMorgan Fundamental Data |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |