Correlation Between UBN and United States
Can any of the company-specific risk be diversified away by investing in both UBN and United States 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 UBN and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBN and United States Oil, you can compare the effects of market volatilities on UBN and United States 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 UBN with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBN and United States.
Diversification Opportunities for UBN and United States
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UBN and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBN and United States Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Oil and UBN 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 UBN are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Oil has no effect on the direction of UBN i.e., UBN and United States go up and down completely randomly.
Pair Corralation between UBN and United States
If you would invest 7,889 in United States Oil on January 19, 2024 and sell it today you would lose (11.00) from holding United States Oil or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UBN vs. United States Oil
Performance |
| Timeline |
| UBN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United States Oil |
UBN and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBN and United States
The main advantage of trading using opposite UBN and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBN position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.The idea behind UBN and United States Oil 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.| United States vs. United States Natural | United States vs. SPDR Gold Shares | United States vs. ProShares Ultra Bloomberg | United States vs. Energy Select Sector |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |