Correlation Between WisdomTree STOXX and UBS Fund
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By analyzing existing cross correlation between WisdomTree STOXX Europe and UBS Fund Solutions, you can compare the effects of market volatilities on WisdomTree STOXX and UBS Fund 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 WisdomTree STOXX with a short position of UBS Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree STOXX and UBS Fund.
Diversification Opportunities for WisdomTree STOXX and UBS Fund
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WisdomTree and UBS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree STOXX Europe and UBS Fund Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Fund Solutions and WisdomTree STOXX 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 WisdomTree STOXX Europe are associated (or correlated) with UBS Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Fund Solutions has no effect on the direction of WisdomTree STOXX i.e., WisdomTree STOXX and UBS Fund go up and down completely randomly.
Pair Corralation between WisdomTree STOXX and UBS Fund
Assuming the 90 days trading horizon WisdomTree STOXX is expected to generate 6.33 times less return on investment than UBS Fund. In addition to that, WisdomTree STOXX is 2.36 times more volatile than UBS Fund Solutions. It trades about 0.0 of its total potential returns per unit of risk. UBS Fund Solutions is currently generating about 0.06 per unit of volatility. If you would invest 3,960 in UBS Fund Solutions on September 26, 2024 and sell it today you would earn a total of 1,174 from holding UBS Fund Solutions or generate 29.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
WisdomTree STOXX Europe vs. UBS Fund Solutions
Performance |
Timeline |
WisdomTree STOXX Europe |
UBS Fund Solutions |
WisdomTree STOXX and UBS Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WisdomTree STOXX and UBS Fund
The main advantage of trading using opposite WisdomTree STOXX and UBS Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree STOXX position performs unexpectedly, UBS Fund 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 UBS Fund will offset losses from the drop in UBS Fund's long position.WisdomTree STOXX vs. UBS Fund Solutions | WisdomTree STOXX vs. Xtrackers II | WisdomTree STOXX vs. Xtrackers Nikkei 225 | WisdomTree STOXX vs. iShares VII PLC |
UBS Fund vs. Xtrackers II | UBS Fund vs. Xtrackers Nikkei 225 | UBS Fund vs. iShares VII PLC | UBS Fund vs. SPDR Gold Shares |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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