Correlation Between UBS Property and CS Real
Can any of the company-specific risk be diversified away by investing in both UBS Property and CS Real 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 Property and CS Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Property and CS Real Estate, you can compare the effects of market volatilities on UBS Property and CS Real 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 Property with a short position of CS Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Property and CS Real.
Diversification Opportunities for UBS Property and CS Real
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBS and HOSP is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding UBS Property and CS Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CS Real Estate and UBS Property 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 Property are associated (or correlated) with CS Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CS Real Estate has no effect on the direction of UBS Property i.e., UBS Property and CS Real go up and down completely randomly.
Pair Corralation between UBS Property and CS Real
Assuming the 90 days trading horizon UBS Property is expected to generate 3.86 times less return on investment than CS Real. But when comparing it to its historical volatility, UBS Property is 1.49 times less risky than CS Real. It trades about 0.03 of its potential returns per unit of risk. CS Real Estate is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 6,006 in CS Real Estate on September 26, 2024 and sell it today you would earn a total of 4,444 from holding CS Real Estate or generate 73.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
UBS Property vs. CS Real Estate
Performance |
Timeline |
UBS Property |
CS Real Estate |
UBS Property and CS Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Property and CS Real
The main advantage of trading using opposite UBS Property and CS Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Property position performs unexpectedly, CS Real 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 CS Real will offset losses from the drop in CS Real's long position.UBS Property vs. SF Sustainable Property | UBS Property vs. Swissinvest Real Estate | UBS Property vs. CS Real Estate | UBS Property vs. Procimmo Real Estate |
CS Real vs. Procimmo Real Estate | CS Real vs. Baloise Holding AG | CS Real vs. Banque Cantonale du | CS Real vs. Invesco EQQQ NASDAQ 100 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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