Correlation Between UBS ETRACS and Innovator Equity
Can any of the company-specific risk be diversified away by investing in both UBS ETRACS and Innovator Equity 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 Innovator Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETRACS and Innovator Equity Managed, you can compare the effects of market volatilities on UBS ETRACS and Innovator Equity 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 Innovator Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETRACS and Innovator Equity.
Diversification Opportunities for UBS ETRACS and Innovator Equity
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and Innovator is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETRACS and Innovator Equity Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Equity Managed 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 Innovator Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Equity Managed has no effect on the direction of UBS ETRACS i.e., UBS ETRACS and Innovator Equity go up and down completely randomly.
Pair Corralation between UBS ETRACS and Innovator Equity
Given the investment horizon of 90 days UBS ETRACS is expected to generate 7.4 times more return on investment than Innovator Equity. However, UBS ETRACS is 7.4 times more volatile than Innovator Equity Managed. It trades about 0.03 of its potential returns per unit of risk. Innovator Equity Managed is currently generating about 0.11 per unit of risk. If you would invest 2,019 in UBS ETRACS on December 2, 2024 and sell it today you would earn a total of 210.00 from holding UBS ETRACS or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS ETRACS vs. Innovator Equity Managed
Performance |
| Timeline |
| UBS ETRACS |
| Innovator Equity Managed |
UBS ETRACS and Innovator Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETRACS and Innovator Equity
The main advantage of trading using opposite UBS ETRACS and Innovator Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETRACS position performs unexpectedly, Innovator Equity 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 Innovator Equity will offset losses from the drop in Innovator Equity's long position.| UBS ETRACS vs. Ultimus Managers Trust | UBS ETRACS vs. American Beacon Select | UBS ETRACS vs. First Trust Indxx | UBS ETRACS vs. Direxion Daily Regional |
| Innovator Equity vs. Innovator SP 500 | Innovator Equity vs. Innovator SP 500 | Innovator Equity vs. Innovator SP 500 | Innovator Equity vs. Rbb Fund |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |