Correlation Between UBS AG and XTL Biopharmaceutica
Can any of the company-specific risk be diversified away by investing in both UBS AG and XTL Biopharmaceutica 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 AG and XTL Biopharmaceutica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS AG London and XTL Biopharmaceuticals, you can compare the effects of market volatilities on UBS AG and XTL Biopharmaceutica 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 AG with a short position of XTL Biopharmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS AG and XTL Biopharmaceutica.
Diversification Opportunities for UBS AG and XTL Biopharmaceutica
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UBS and XTL is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding UBS AG London and XTL Biopharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTL Biopharmaceuticals and UBS AG 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 AG London are associated (or correlated) with XTL Biopharmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTL Biopharmaceuticals has no effect on the direction of UBS AG i.e., UBS AG and XTL Biopharmaceutica go up and down completely randomly.
Pair Corralation between UBS AG and XTL Biopharmaceutica
Given the investment horizon of 90 days UBS AG London is expected to generate 0.14 times more return on investment than XTL Biopharmaceutica. However, UBS AG London is 7.29 times less risky than XTL Biopharmaceutica. It trades about 0.09 of its potential returns per unit of risk. XTL Biopharmaceuticals is currently generating about -0.19 per unit of risk. If you would invest 2,343 in UBS AG London on January 26, 2024 and sell it today you would earn a total of 36.10 from holding UBS AG London or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
UBS AG London vs. XTL Biopharmaceuticals
Performance |
| Timeline |
| UBS AG London |
| XTL Biopharmaceuticals |
UBS AG and XTL Biopharmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS AG and XTL Biopharmaceutica
The main advantage of trading using opposite UBS AG and XTL Biopharmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS AG position performs unexpectedly, XTL Biopharmaceutica 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 XTL Biopharmaceutica will offset losses from the drop in XTL Biopharmaceutica's long position.The idea behind UBS AG London and XTL Biopharmaceuticals 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.| XTL Biopharmaceutica vs. Nice | XTL Biopharmaceutica vs. Bank Leumi Le Israel | XTL Biopharmaceutica vs. ICL Israel Chemicals | XTL Biopharmaceutica vs. Mizrahi Tefahot |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |