Correlation Between EA Series and UBS ETRACS
Can any of the company-specific risk be diversified away by investing in both EA Series and UBS ETRACS 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 EA Series and UBS ETRACS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and UBS ETRACS , you can compare the effects of market volatilities on EA Series and UBS ETRACS 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 EA Series with a short position of UBS ETRACS. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and UBS ETRACS.
Diversification Opportunities for EA Series and UBS ETRACS
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DRLL and UBS is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and UBS ETRACS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETRACS and EA Series 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 EA Series Trust are associated (or correlated) with UBS ETRACS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETRACS has no effect on the direction of EA Series i.e., EA Series and UBS ETRACS go up and down completely randomly.
Pair Corralation between EA Series and UBS ETRACS
Given the investment horizon of 90 days EA Series is expected to generate 14.17 times less return on investment than UBS ETRACS. But when comparing it to its historical volatility, EA Series Trust is 3.92 times less risky than UBS ETRACS. It trades about 0.01 of its potential returns per unit of risk. UBS ETRACS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,871 in UBS ETRACS on December 2, 2024 and sell it today you would earn a total of 358.00 from holding UBS ETRACS or generate 19.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
EA Series Trust vs. UBS ETRACS
Performance |
Timeline |
EA Series Trust |
UBS ETRACS |
EA Series and UBS ETRACS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EA Series and UBS ETRACS
The main advantage of trading using opposite EA Series and UBS ETRACS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, UBS ETRACS 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 ETRACS will offset losses from the drop in UBS ETRACS's long position.EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. Rumble Inc | EA Series vs. EA Series Trust |
UBS ETRACS vs. Ultimus Managers Trust | UBS ETRACS vs. American Beacon Select | UBS ETRACS vs. First Trust Indxx | UBS ETRACS vs. Direxion Daily Regional |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Valuation Check real value of public entities based on technical and fundamental data |