Correlation Between UBS and JJEB

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Can any of the company-specific risk be diversified away by investing in both UBS and JJEB 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 JJEB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and JJEB, you can compare the effects of market volatilities on UBS and JJEB 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 JJEB. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and JJEB.

Diversification Opportunities for UBS and JJEB

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between UBS and JJEB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS and JJEB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JJEB 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 JJEB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JJEB has no effect on the direction of UBS i.e., UBS and JJEB go up and down completely randomly.

Pair Corralation between UBS and JJEB

If you would invest (100.00) in JJEB on December 29, 2023 and sell it today you would earn a total of  100.00  from holding JJEB or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

UBS  vs.  JJEB

 Performance 
       Timeline  
UBS 

Risk-Adjusted Performance

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High
Very Weak
Over the last 90 days UBS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, UBS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
JJEB 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days JJEB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, JJEB is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

UBS and JJEB Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with UBS and JJEB

The main advantage of trading using opposite UBS and JJEB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, JJEB 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 JJEB will offset losses from the drop in JJEB's long position.
The idea behind UBS and JJEB 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.
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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 Stocks Directory module to find actively traded stocks across global markets.

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