Correlation Between UBS and ETRACS Monthly
Can any of the company-specific risk be diversified away by investing in both UBS and ETRACS Monthly 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 and ETRACS Monthly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and ETRACS Monthly Pay, you can compare the effects of market volatilities on UBS and ETRACS Monthly 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 with a short position of ETRACS Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and ETRACS Monthly.
Diversification Opportunities for UBS and ETRACS Monthly
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and ETRACS is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding UBS and ETRACS Monthly Pay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETRACS Monthly Pay and UBS 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 are associated (or correlated) with ETRACS Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETRACS Monthly Pay has no effect on the direction of UBS i.e., UBS and ETRACS Monthly go up and down completely randomly.
Pair Corralation between UBS and ETRACS Monthly
Given the investment horizon of 90 days UBS is expected to generate 0.91 times more return on investment than ETRACS Monthly. However, UBS is 1.1 times less risky than ETRACS Monthly. It trades about 0.14 of its potential returns per unit of risk. ETRACS Monthly Pay is currently generating about 0.0 per unit of risk. If you would invest 3,339 in UBS on November 2, 2024 and sell it today you would earn a total of 476.00 from holding UBS or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.87% |
| Values | Daily Returns |
UBS vs. ETRACS Monthly Pay
Performance |
| Timeline |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| ETRACS Monthly Pay |
UBS and ETRACS Monthly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS and ETRACS Monthly
The main advantage of trading using opposite UBS and ETRACS Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, ETRACS Monthly 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 ETRACS Monthly will offset losses from the drop in ETRACS Monthly's long position.The idea behind UBS and ETRACS Monthly Pay pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| ETRACS Monthly vs. ETRACS 2xMonthly Pay | ETRACS Monthly vs. ETRACS Monthly Pay | ETRACS Monthly vs. ETRACS Monthly Pay | ETRACS Monthly vs. ETRACS 2xMonthly Pay |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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