Correlation Between UBS ETRACS and CitiGroup
Can any of the company-specific risk be diversified away by investing in both UBS ETRACS and CitiGroup 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 ETRACS and CitiGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETRACS and CitiGroup, you can compare the effects of market volatilities on UBS ETRACS and CitiGroup 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 ETRACS with a short position of CitiGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETRACS and CitiGroup.
Diversification Opportunities for UBS ETRACS and CitiGroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UBS and CitiGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETRACS and CitiGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CitiGroup and UBS ETRACS 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 ETRACS are associated (or correlated) with CitiGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CitiGroup has no effect on the direction of UBS ETRACS i.e., UBS ETRACS and CitiGroup go up and down completely randomly.
Pair Corralation between UBS ETRACS and CitiGroup
If you would invest (100.00) in CitiGroup on January 26, 2024 and sell it today you would earn a total of 100.00 from holding CitiGroup or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
UBS ETRACS vs. CitiGroup
Performance |
| Timeline |
| UBS ETRACS |
| CitiGroup |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
UBS ETRACS and CitiGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETRACS and CitiGroup
The main advantage of trading using opposite UBS ETRACS and CitiGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETRACS position performs unexpectedly, CitiGroup 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 CitiGroup will offset losses from the drop in CitiGroup's long position.| UBS ETRACS vs. ProShares Ultra Bloomberg | UBS ETRACS vs. Direxion Daily Semiconductor | UBS ETRACS vs. MicroSectors Big Oil | UBS ETRACS vs. Direxion Daily SP |
| CitiGroup vs. ProShares Ultra Bloomberg | CitiGroup vs. Direxion Daily Semiconductor | CitiGroup vs. MicroSectors Big Oil | CitiGroup vs. Direxion Daily SP |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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