Correlation Between UBS PF and UBS Vitainvest

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both UBS PF and UBS Vitainvest 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 PF and UBS Vitainvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS PF Swiss and UBS Vitainvest , you can compare the effects of market volatilities on UBS PF and UBS Vitainvest 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 PF with a short position of UBS Vitainvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS PF and UBS Vitainvest.

Diversification Opportunities for UBS PF and UBS Vitainvest

-0.12
  Correlation Coefficient

Good diversification

The 3 months correlation between UBS and UBS is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding UBS PF Swiss and UBS Vitainvest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Vitainvest and UBS PF 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 PF Swiss are associated (or correlated) with UBS Vitainvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Vitainvest has no effect on the direction of UBS PF i.e., UBS PF and UBS Vitainvest go up and down completely randomly.

Pair Corralation between UBS PF and UBS Vitainvest

Assuming the 90 days trading horizon UBS PF Swiss is expected to generate 4.05 times more return on investment than UBS Vitainvest. However, UBS PF is 4.05 times more volatile than UBS Vitainvest . It trades about 0.02 of its potential returns per unit of risk. UBS Vitainvest is currently generating about -0.24 per unit of risk. If you would invest  15,500  in UBS PF Swiss on October 7, 2024 and sell it today you would earn a total of  60.00  from holding UBS PF Swiss or generate 0.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy93.75%
ValuesDaily Returns

UBS PF Swiss  vs.  UBS Vitainvest

 Performance 
       Timeline  
UBS PF Swiss 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in UBS PF Swiss are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable basic indicators, UBS PF is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
UBS Vitainvest 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days UBS Vitainvest has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, UBS Vitainvest is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

UBS PF and UBS Vitainvest Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with UBS PF and UBS Vitainvest

The main advantage of trading using opposite UBS PF and UBS Vitainvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS PF position performs unexpectedly, UBS Vitainvest 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 Vitainvest will offset losses from the drop in UBS Vitainvest's long position.
The idea behind UBS PF Swiss and UBS Vitainvest 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing