Correlation Between IShares Bloomberg and UBS

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

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

Diversification Opportunities for IShares Bloomberg and UBS

0.0

Correlation Coefficient

IShares Bloomberg  UBS

Pay attention - limited upside

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

Pair Corralation between IShares Bloomberg and UBS

If you would invest  4,711  in iShares Bloomberg Roll on December 26, 2024 and sell it today you would earn a total of  433.00  from holding iShares Bloomberg Roll or generate 9.19% return on investment over 90 days.

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

iShares Bloomberg Roll  vs.  UBS

iShares Bloomberg Roll

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Bloomberg Roll are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, IShares Bloomberg may actually be approaching a critical reversion point that can send shares even higher in April 2025.

UBS

Risk-Adjusted Performance

Very Weak

Over the last 90 days UBS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, UBS is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with IShares Bloomberg and UBS

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

The idea behind iShares Bloomberg Roll and UBS 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.