Correlation Between UBS Plc and IShares STOXX
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By analyzing existing cross correlation between UBS plc and iShares STOXX Europe, you can compare the effects of market volatilities on UBS Plc and IShares STOXX 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 Plc with a short position of IShares STOXX. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Plc and IShares STOXX.
Diversification Opportunities for UBS Plc and IShares STOXX
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and IShares is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding UBS plc and iShares STOXX Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares STOXX Europe and UBS Plc 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 plc are associated (or correlated) with IShares STOXX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares STOXX Europe has no effect on the direction of UBS Plc i.e., UBS Plc and IShares STOXX go up and down completely randomly.
Pair Corralation between UBS Plc and IShares STOXX
Assuming the 90 days trading horizon UBS plc is expected to generate 1.19 times more return on investment than IShares STOXX. However, UBS Plc is 1.19 times more volatile than iShares STOXX Europe. It trades about -0.13 of its potential returns per unit of risk. iShares STOXX Europe is currently generating about -0.21 per unit of risk. If you would invest 9,297 in UBS plc on October 4, 2024 and sell it today you would lose (126.00) from holding UBS plc or give up 1.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
UBS plc vs. iShares STOXX Europe
Performance |
Timeline |
UBS plc |
iShares STOXX Europe |
UBS Plc and IShares STOXX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Plc and IShares STOXX
The main advantage of trading using opposite UBS Plc and IShares STOXX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Plc position performs unexpectedly, IShares STOXX 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 IShares STOXX will offset losses from the drop in IShares STOXX's long position.UBS Plc vs. UBS Barclays Liquid | UBS Plc vs. UBS ETF Public | UBS Plc vs. UBS ETF SICAV | UBS Plc vs. UBS Fund Solutions |
IShares STOXX vs. UBS Fund Solutions | IShares STOXX vs. Xtrackers II | IShares STOXX vs. Xtrackers Nikkei 225 | IShares STOXX vs. iShares VII PLC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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