Correlation Between UBS ETRACS and Abrdn Bloomberg
Can any of the company-specific risk be diversified away by investing in both UBS ETRACS and Abrdn Bloomberg 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 Abrdn Bloomberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETRACS and abrdn Bloomberg All, you can compare the effects of market volatilities on UBS ETRACS and Abrdn Bloomberg 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 Abrdn Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETRACS and Abrdn Bloomberg.
Diversification Opportunities for UBS ETRACS and Abrdn Bloomberg
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between UBS and Abrdn is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETRACS and abrdn Bloomberg All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on abrdn Bloomberg All 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 Abrdn Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of abrdn Bloomberg All has no effect on the direction of UBS ETRACS i.e., UBS ETRACS and Abrdn Bloomberg go up and down completely randomly.
Pair Corralation between UBS ETRACS and Abrdn Bloomberg
Given the investment horizon of 90 days UBS ETRACS is expected to generate 4.7 times more return on investment than Abrdn Bloomberg. However, UBS ETRACS is 4.7 times more volatile than abrdn Bloomberg All. It trades about 0.08 of its potential returns per unit of risk. abrdn Bloomberg All is currently generating about 0.05 per unit of risk. If you would invest 1,477 in UBS ETRACS on January 24, 2024 and sell it today you would earn a total of 883.00 from holding UBS ETRACS or generate 59.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS ETRACS vs. abrdn Bloomberg All
Performance |
| Timeline |
| UBS ETRACS |
| abrdn Bloomberg All |
UBS ETRACS and Abrdn Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETRACS and Abrdn Bloomberg
The main advantage of trading using opposite UBS ETRACS and Abrdn Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETRACS position performs unexpectedly, Abrdn Bloomberg 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 Abrdn Bloomberg will offset losses from the drop in Abrdn Bloomberg's long position.| UBS ETRACS vs. ProShares UltraShort Silver | UBS ETRACS vs. ProShares UltraShort Gold | UBS ETRACS vs. VanEck Junior Gold |
| Abrdn Bloomberg vs. GraniteShares Bloomberg Commodity | Abrdn Bloomberg vs. abrdn Bloomberg All | Abrdn Bloomberg vs. PIMCO 15 Year | Abrdn Bloomberg vs. Invesco Optimum Yield |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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