Correlation Between UBS and PIMCO 1

Can any of the company-specific risk be diversified away by investing in both UBS and PIMCO 1 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 PIMCO 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UBS and PIMCO 1 5 Year, you can compare the effects of market volatilities on UBS and PIMCO 1 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 PIMCO 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and PIMCO 1.

Diversification Opportunities for UBS and PIMCO 1

0.0

Correlation Coefficient

UBS  PIMCO 1

Pay attention - limited upside

The 3 months correlation between UBS and PIMCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS and PIMCO 1 5 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO 1 5 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 PIMCO 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO 1 5 has no effect on the direction of UBS i.e., UBS and PIMCO 1 go up and down completely randomly.

Pair Corralation between UBS and PIMCO 1

If you would invest  5,215  in PIMCO 1 5 Year on December 27, 2024 and sell it today you would earn a total of  153.00  from holding PIMCO 1 5 Year or generate 2.93% return on investment over 90 days.

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

UBS  vs.  PIMCO 1 5 Year

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. In spite of fairly strong technical and fundamental indicators, UBS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

PIMCO 1 5

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in PIMCO 1 5 Year are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, PIMCO 1 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with UBS and PIMCO 1

The main advantage of trading using opposite UBS and PIMCO 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, PIMCO 1 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 PIMCO 1 will offset losses from the drop in PIMCO 1's long position.

The idea behind UBS and PIMCO 1 5 Year 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.