Correlation Between Procimmo Real and UBS PF

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

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

Diversification Opportunities for Procimmo Real and UBS PF

0.81

Correlation Coefficient

Procimmo Real  UBS PF

Very poor diversification

The 3 months correlation between Procimmo and UBS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Procimmo Real Estate and UBS PF Swiss in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS PF Swiss and Procimmo Real 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 Procimmo Real Estate are associated (or correlated) with UBS PF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS PF Swiss has no effect on the direction of Procimmo Real i.e., Procimmo Real and UBS PF go up and down completely randomly.

Pair Corralation between Procimmo Real and UBS PF

Assuming the 90 days trading horizon Procimmo Real is expected to generate 1.53 times less return on investment than UBS PF. But when comparing it to its historical volatility, Procimmo Real Estate is 1.21 times less risky than UBS PF. It trades about 0.11 of its potential returns per unit of risk. UBS PF Swiss is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  14,150  in UBS PF Swiss on October 24, 2024 and sell it today you would earn a total of  1,690  from holding UBS PF Swiss or generate 11.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.77%
Values	Daily Returns

Procimmo Real Estate  vs.  UBS PF Swiss

Procimmo Real Estate

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Procimmo Real Estate are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly abnormal basic indicators, Procimmo Real may actually be approaching a critical reversion point that can send shares even higher in February 2025.

UBS PF Swiss

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in UBS PF Swiss are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unfluctuating basic indicators, UBS PF may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Procimmo Real and UBS PF

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

The idea behind Procimmo Real Estate and UBS PF Swiss 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.