Correlation Between Formidable Fortress and UBS

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

By analyzing existing cross correlation between Formidable Fortress ETF and UBS, you can compare the effects of market volatilities on Formidable Fortress 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 Formidable Fortress with a short position of UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Formidable Fortress and UBS.

Diversification Opportunities for Formidable Fortress and UBS

0.0

Correlation Coefficient

Formidable Fortress  UBS

Pay attention - limited upside

The 3 months correlation between Formidable and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Formidable Fortress ETF and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS and Formidable Fortress 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 Formidable Fortress ETF 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 Formidable Fortress i.e., Formidable Fortress and UBS go up and down completely randomly.

Pair Corralation between Formidable Fortress and UBS

If you would invest  2,692  in Formidable Fortress ETF on September 19, 2024 and sell it today you would earn a total of  288.00  from holding Formidable Fortress ETF or generate 10.7% return on investment over 90 days.

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

Formidable Fortress ETF  vs.  UBS

Formidable Fortress ETF

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Formidable Fortress ETF are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Formidable Fortress is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

UBS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UBS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, UBS is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Formidable Fortress and UBS

The main advantage of trading using opposite Formidable Fortress and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Formidable Fortress 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 Formidable Fortress ETF 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.

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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.