Correlation Between Ubs Ultra and Dunham Focused
Can any of the company-specific risk be diversified away by investing in both Ubs Ultra and Dunham Focused 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 Ultra and Dunham Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Ultra Short and Dunham Focused Large, you can compare the effects of market volatilities on Ubs Ultra and Dunham Focused 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 Ultra with a short position of Dunham Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Ultra and Dunham Focused.
Diversification Opportunities for Ubs Ultra and Dunham Focused
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ubs and Dunham is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Ultra Short and Dunham Focused Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Focused Large and Ubs Ultra 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 Ultra Short are associated (or correlated) with Dunham Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Focused Large has no effect on the direction of Ubs Ultra i.e., Ubs Ultra and Dunham Focused go up and down completely randomly.
Pair Corralation between Ubs Ultra and Dunham Focused
Assuming the 90 days horizon Ubs Ultra is expected to generate 7.07 times less return on investment than Dunham Focused. But when comparing it to its historical volatility, Ubs Ultra Short is 12.6 times less risky than Dunham Focused. It trades about 0.21 of its potential returns per unit of risk. Dunham Focused Large is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,086 in Dunham Focused Large on September 26, 2024 and sell it today you would earn a total of 2,014 from holding Dunham Focused Large or generate 96.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.8% |
Values | Daily Returns |
Ubs Ultra Short vs. Dunham Focused Large
Performance |
Timeline |
Ubs Ultra Short |
Dunham Focused Large |
Ubs Ultra and Dunham Focused Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ubs Ultra and Dunham Focused
The main advantage of trading using opposite Ubs Ultra and Dunham Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Ultra position performs unexpectedly, Dunham Focused 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 Dunham Focused will offset losses from the drop in Dunham Focused's long position.Ubs Ultra vs. Pace Smallmedium Value | Ubs Ultra vs. Pace International Equity | Ubs Ultra vs. Pace International Equity | Ubs Ultra vs. Ubs Allocation Fund |
Dunham Focused vs. Dunham Dynamic Macro | Dunham Focused vs. Dunham Appreciation Income | Dunham Focused vs. Dunham Porategovernment Bond | Dunham Focused vs. Dunham Small Cap |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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