Correlation Between UBS Fund and UBS ETF
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By analyzing existing cross correlation between UBS Fund Solutions and UBS ETF SICAV, you can compare the effects of market volatilities on UBS Fund and UBS ETF 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 UBS ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and UBS ETF.
Diversification Opportunities for UBS Fund and UBS ETF
Very weak diversification
The 3 months correlation between UBS and UBS is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and UBS ETF SICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETF SICAV 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 UBS ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETF SICAV has no effect on the direction of UBS Fund i.e., UBS Fund and UBS ETF go up and down completely randomly.
Pair Corralation between UBS Fund and UBS ETF
Assuming the 90 days trading horizon UBS Fund is expected to generate 4.16 times less return on investment than UBS ETF. In addition to that, UBS Fund is 1.12 times more volatile than UBS ETF SICAV. It trades about 0.04 of its total potential returns per unit of risk. UBS ETF SICAV is currently generating about 0.19 per unit of volatility. If you would invest 8,263 in UBS ETF SICAV on December 28, 2024 and sell it today you would earn a total of 750.00 from holding UBS ETF SICAV or generate 9.08% 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. UBS ETF SICAV
Performance |
Timeline |
UBS Fund Solutions |
UBS ETF SICAV |
UBS Fund and UBS ETF Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Fund and UBS ETF
The main advantage of trading using opposite UBS Fund and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, UBS ETF 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 UBS ETF will offset losses from the drop in UBS ETF'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 |
UBS ETF vs. UBS Barclays Liquid | UBS ETF vs. UBS ETF Public | UBS ETF vs. UBS Fund Solutions | UBS ETF vs. UBS 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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