Correlation Between International Business and UBS Plc
Can any of the company-specific risk be diversified away by investing in both International Business and UBS Plc 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 International Business and UBS Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and UBS plc , you can compare the effects of market volatilities on International Business and UBS Plc 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 International Business with a short position of UBS Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and UBS Plc.
Diversification Opportunities for International Business and UBS Plc
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between International and UBS is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and UBS plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS plc and International Business 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 International Business Machines are associated (or correlated) with UBS Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS plc has no effect on the direction of International Business i.e., International Business and UBS Plc go up and down completely randomly.
Pair Corralation between International Business and UBS Plc
If you would invest 840,850 in UBS plc on September 5, 2024 and sell it today you would earn a total of 94,250 from holding UBS plc or generate 11.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 69.23% |
Values | Daily Returns |
International Business Machine vs. UBS plc
Performance |
Timeline |
International Business |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UBS plc |
International Business and UBS Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with International Business and UBS Plc
The main advantage of trading using opposite International Business and UBS Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business position performs unexpectedly, UBS Plc 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 Plc will offset losses from the drop in UBS Plc's long position.International Business vs. SBM Offshore NV | International Business vs. Blackrock World Mining | International Business vs. McEwen Mining | International Business vs. Bisichi Mining PLC |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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