Correlation Between ZKB Gold and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both ZKB Gold and UBSFund Solutions 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 ZKB Gold and UBSFund Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZKB Gold ETF and UBSFund Solutions Bloomberg, you can compare the effects of market volatilities on ZKB Gold and UBSFund Solutions 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 ZKB Gold with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZKB Gold and UBSFund Solutions.
Diversification Opportunities for ZKB Gold and UBSFund Solutions
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZKB and UBSFund is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ZKB Gold ETF and UBSFund Solutions Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions and ZKB Gold 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 ZKB Gold ETF are associated (or correlated) with UBSFund Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBSFund Solutions has no effect on the direction of ZKB Gold i.e., ZKB Gold and UBSFund Solutions go up and down completely randomly.
Pair Corralation between ZKB Gold and UBSFund Solutions
Assuming the 90 days trading horizon ZKB Gold ETF is expected to generate 4.92 times more return on investment than UBSFund Solutions. However, ZKB Gold is 4.92 times more volatile than UBSFund Solutions Bloomberg. It trades about 0.21 of its potential returns per unit of risk. UBSFund Solutions Bloomberg is currently generating about -0.2 per unit of risk. If you would invest 236,200 in ZKB Gold ETF on October 15, 2024 and sell it today you would earn a total of 6,450 from holding ZKB Gold ETF or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.33% |
| Values | Daily Returns |
ZKB Gold ETF vs. UBSFund Solutions Bloomberg
Performance |
| Timeline |
| ZKB Gold ETF |
| UBSFund Solutions |
ZKB Gold and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZKB Gold and UBSFund Solutions
The main advantage of trading using opposite ZKB Gold and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZKB Gold position performs unexpectedly, UBSFund Solutions 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 UBSFund Solutions will offset losses from the drop in UBSFund Solutions' long position.The idea behind ZKB Gold ETF and UBSFund Solutions Bloomberg 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.| UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |