Correlation Between UBS Plc and Amundi Treasury
Can any of the company-specific risk be diversified away by investing in both UBS Plc and Amundi Treasury 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 Plc and Amundi Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS plc and Amundi Treasury Bond, you can compare the effects of market volatilities on UBS Plc and Amundi Treasury 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 Amundi Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Plc and Amundi Treasury.
Diversification Opportunities for UBS Plc and Amundi Treasury
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UBS and Amundi is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding UBS plc and Amundi Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Treasury Bond 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 Amundi Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Treasury Bond has no effect on the direction of UBS Plc i.e., UBS Plc and Amundi Treasury go up and down completely randomly.
Pair Corralation between UBS Plc and Amundi Treasury
Assuming the 90 days trading horizon UBS plc is expected to generate 0.76 times more return on investment than Amundi Treasury. However, UBS plc is 1.32 times less risky than Amundi Treasury. It trades about 0.07 of its potential returns per unit of risk. Amundi Treasury Bond is currently generating about -0.01 per unit of risk. If you would invest 730,844 in UBS plc on September 6, 2024 and sell it today you would earn a total of 196,856 from holding UBS plc or generate 26.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
UBS plc vs. Amundi Treasury Bond
Performance |
Timeline |
UBS plc |
Amundi Treasury Bond |
UBS Plc and Amundi Treasury Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Plc and Amundi Treasury
The main advantage of trading using opposite UBS Plc and Amundi Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Plc position performs unexpectedly, Amundi Treasury 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 Amundi Treasury will offset losses from the drop in Amundi Treasury's long position.UBS Plc vs. Leverage Shares 3x | UBS Plc vs. WisdomTree Natural Gas | UBS Plc vs. Leverage Shares 3x | UBS Plc vs. GraniteShares 3x Short |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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