Correlation Between UBS and UBS AG
Can any of the company-specific risk be diversified away by investing in both UBS and UBS AG 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 and UBS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and UBS AG London, you can compare the effects of market volatilities on UBS and UBS AG 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 with a short position of UBS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and UBS AG.
Diversification Opportunities for UBS and UBS AG
Pay attention - limited upside
The 3 months correlation between UBS and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS and UBS AG London in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS AG London and UBS 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 are associated (or correlated) with UBS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS AG London has no effect on the direction of UBS i.e., UBS and UBS AG go up and down completely randomly.
Pair Corralation between UBS and UBS AG
If you would invest 1,838 in UBS AG London on February 13, 2024 and sell it today you would earn a total of 552.00 from holding UBS AG London or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UBS vs. UBS AG London
Performance |
| Timeline |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| UBS AG London |
UBS and UBS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS and UBS AG
The main advantage of trading using opposite UBS and UBS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, UBS AG 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 AG will offset losses from the drop in UBS AG's long position.The idea behind UBS and UBS AG London pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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