Correlation Between UBS PF and UBS Money

Can any of the company-specific risk be diversified away by investing in both UBS PF and UBS Money 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 Money 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 Money Market, you can compare the effects of market volatilities on UBS PF and UBS Money 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 Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS PF and UBS Money.

Diversification Opportunities for UBS PF and UBS Money

0.0

Correlation Coefficient

UBS PF  UBS Money

Pay attention - limited upside

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

Pair Corralation between UBS PF and UBS Money

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

UBS PF Swiss  vs.  UBS Money Market

UBS PF Swiss

Risk-Adjusted Performance

5 of 100

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 Money Market

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UBS Money Market has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable basic indicators, UBS Money is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with UBS PF and UBS Money

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

The idea behind UBS PF Swiss and UBS Money Market 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.