Correlation Between UBS Fund and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both UBS Fund and SSgA SPDR 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 SSgA SPDR 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 SSgA SPDR ETFs, you can compare the effects of market volatilities on UBS Fund and SSgA SPDR 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 SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and SSgA SPDR.
Diversification Opportunities for UBS Fund and SSgA SPDR
Very weak diversification
The 3 months correlation between UBS and SSgA is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs 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 SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of UBS Fund i.e., UBS Fund and SSgA SPDR go up and down completely randomly.
Pair Corralation between UBS Fund and SSgA SPDR
Assuming the 90 days trading horizon UBS Fund Solutions is expected to under-perform the SSgA SPDR. In addition to that, UBS Fund is 3.65 times more volatile than SSgA SPDR ETFs. It trades about -0.02 of its total potential returns per unit of risk. SSgA SPDR ETFs is currently generating about 0.2 per unit of volatility. If you would invest 3,916 in SSgA SPDR ETFs on September 23, 2024 and sell it today you would earn a total of 45.00 from holding SSgA SPDR ETFs or generate 1.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
UBS Fund Solutions vs. SSgA SPDR ETFs
Performance |
Timeline |
UBS Fund Solutions |
SSgA SPDR ETFs |
UBS Fund and SSgA SPDR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Fund and SSgA SPDR
The main advantage of trading using opposite UBS Fund and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.UBS Fund vs. Xtrackers II | UBS Fund vs. Xtrackers Nikkei 225 | UBS Fund vs. iShares VII PLC | UBS Fund vs. SPDR Gold Shares |
SSgA SPDR vs. UBS Fund Solutions | SSgA SPDR vs. Xtrackers II | SSgA SPDR vs. Xtrackers Nikkei 225 | SSgA SPDR 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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