Correlation Between UBS and Abrdn Bloomberg

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

By analyzing existing cross correlation between UBS and abrdn Bloomberg All, you can compare the effects of market volatilities on UBS and Abrdn Bloomberg 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 Abrdn Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and Abrdn Bloomberg.

Diversification Opportunities for UBS and Abrdn Bloomberg

0.0

Correlation Coefficient

UBS  Abrdn Bloomberg

Pay attention - limited upside

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

Pair Corralation between UBS and Abrdn Bloomberg

If you would invest  3,109  in abrdn Bloomberg All on November 28, 2024 and sell it today you would earn a total of  241.00  from holding abrdn Bloomberg All or generate 7.75% return on investment over 90 days.

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

UBS  vs.  abrdn Bloomberg All

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.

abrdn Bloomberg All

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in abrdn Bloomberg All are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent fundamental indicators, Abrdn Bloomberg may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Pair Trading with UBS and Abrdn Bloomberg

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

The idea behind UBS and abrdn Bloomberg All 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.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.