Correlation Between LG Clean and UBS ETF

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Can any of the company-specific risk be diversified away by investing in both LG Clean and UBS ETF 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 LG Clean and UBS ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LG Clean Energy and UBS ETF MSCI, you can compare the effects of market volatilities on LG Clean and UBS ETF 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 LG Clean with a short position of UBS ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Clean and UBS ETF.

Diversification Opportunities for LG Clean and UBS ETF

RENWUBSDiversified AwayRENWUBSDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between LG Clean and UBS ETF

If you would invest  2,059  in UBS ETF MSCI on October 27, 2024 and sell it today you would earn a total of  7.00  from holding UBS ETF MSCI or generate 0.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.69%
ValuesDaily Returns

LG Clean Energy  vs.  UBS ETF MSCI

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -6-5-4-3-2-10
JavaScript chart by amCharts 3.21.15RENW CHSRIA
       Timeline  
LG Clean Energy 

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days LG Clean Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, LG Clean is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
UBS ETF MSCI 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days UBS ETF MSCI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, UBS ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan19.219.419.619.82020.220.420.620.8

LG Clean and UBS ETF Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.20.40.60.8
JavaScript chart by amCharts 3.21.15RENW CHSRIA
       Returns  

Pair Trading with LG Clean and UBS ETF

The main advantage of trading using opposite LG Clean and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Clean position performs unexpectedly, UBS ETF 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 ETF will offset losses from the drop in UBS ETF's long position.
The idea behind LG Clean Energy and UBS ETF MSCI 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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