Correlation Between UBS Money and UBS Property

Can any of the company-specific risk be diversified away by investing in both UBS Money and UBS Property 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 Money and UBS Property into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UBS Money Market and UBS Property, you can compare the effects of market volatilities on UBS Money and UBS Property 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 Money with a short position of UBS Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Money and UBS Property.

Diversification Opportunities for UBS Money and UBS Property

0.0

Correlation Coefficient

UBS Money  UBS Property

Pay attention - limited upside

The 3 months correlation between UBS and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS Money Market and UBS Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Property and UBS Money 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 Money Market are associated (or correlated) with UBS Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Property has no effect on the direction of UBS Money i.e., UBS Money and UBS Property go up and down completely randomly.

Pair Corralation between UBS Money and UBS Property

If you would invest  7,100  in UBS Property on October 7, 2024 and sell it today you would earn a total of  110.00  from holding UBS Property or generate 1.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

UBS Money Market  vs.  UBS Property

UBS Money Market

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UBS Money Market has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable basic indicators, UBS Money is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

UBS Property

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in UBS Property are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly abnormal basic indicators, UBS Property may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with UBS Money and UBS Property

The main advantage of trading using opposite UBS Money and UBS Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Money position performs unexpectedly, UBS Property 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 UBS Property will offset losses from the drop in UBS Property's long position.

The idea behind UBS Money Market and UBS Property 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.

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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.