Correlation Between UBS Fund and Legal General
Can any of the company-specific risk be diversified away by investing in both UBS Fund and Legal General 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 Fund and Legal General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Fund Solutions and Legal General UCITS, you can compare the effects of market volatilities on UBS Fund and Legal General 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 Fund with a short position of Legal General. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and Legal General.
Diversification Opportunities for UBS Fund and Legal General
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UBS and Legal is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and Legal General UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Legal General UCITS and UBS Fund 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 Fund Solutions are associated (or correlated) with Legal General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Legal General UCITS has no effect on the direction of UBS Fund i.e., UBS Fund and Legal General go up and down completely randomly.
Pair Corralation between UBS Fund and Legal General
Assuming the 90 days trading horizon UBS Fund is expected to generate 4.6 times less return on investment than Legal General. But when comparing it to its historical volatility, UBS Fund Solutions is 2.7 times less risky than Legal General. It trades about 0.09 of its potential returns per unit of risk. Legal General UCITS is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,132 in Legal General UCITS on September 17, 2024 and sell it today you would earn a total of 318.00 from holding Legal General UCITS or generate 28.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.48% |
Values | Daily Returns |
UBS Fund Solutions vs. Legal General UCITS
Performance |
Timeline |
UBS Fund Solutions |
Legal General UCITS |
UBS Fund and Legal General Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Fund and Legal General
The main advantage of trading using opposite UBS Fund and Legal General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, Legal General 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 Legal General will offset losses from the drop in Legal General's long position.UBS Fund vs. UBS Barclays Liquid | UBS Fund vs. UBS ETF Public | UBS Fund vs. UBS ETF SICAV | UBS Fund vs. UBS Fund Solutions |
Legal General vs. UBS Fund Solutions | Legal General vs. Xtrackers II | Legal General vs. Xtrackers Nikkei 225 | Legal General 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |