Correlation Between UBS and UBS

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Can any of the company-specific risk be diversified away by investing in both UBS 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 UBS and UBS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and UBS, you can compare the effects of market volatilities on UBS 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 UBS with a short position of UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and UBS.

Diversification Opportunities for UBS and UBS

UBSUBSDiversified AwayUBSUBSDiversified Away100%
0.0
  Correlation Coefficient
 UBS
 UBS

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 and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS 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 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 UBS i.e., UBS and UBS go up and down completely randomly.

Pair Corralation between UBS and UBS

If you would invest (100.00) in UBS on September 21, 2024 and sell it today you would earn a total of  100.00  from holding UBS or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

UBS  vs.  UBS

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 2468
JavaScript chart by amCharts 3.21.15DJCI MLPV
       Timeline  
UBS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days UBS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, UBS is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
UBS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days UBS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, UBS is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

UBS and UBS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 2468
JavaScript chart by amCharts 3.21.15DJCI MLPV
       Returns  

Pair Trading with UBS and UBS

The main advantage of trading using opposite UBS and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS 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 UBS 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.
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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