Correlation Between UBS Fund and HANetf ICAV
Can any of the company-specific risk be diversified away by investing in both UBS Fund and HANetf ICAV 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 Fund and HANetf ICAV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Fund Solutions and HANetf ICAV , you can compare the effects of market volatilities on UBS Fund and HANetf ICAV 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 Fund with a short position of HANetf ICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and HANetf ICAV.
Diversification Opportunities for UBS Fund and HANetf ICAV
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBS and HANetf is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and HANetf ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANetf ICAV and UBS Fund 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 Fund Solutions are associated (or correlated) with HANetf ICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANetf ICAV has no effect on the direction of UBS Fund i.e., UBS Fund and HANetf ICAV go up and down completely randomly.
Pair Corralation between UBS Fund and HANetf ICAV
Assuming the 90 days trading horizon UBS Fund Solutions is expected to under-perform the HANetf ICAV. But the etf apears to be less risky and, when comparing its historical volatility, UBS Fund Solutions is 1.83 times less risky than HANetf ICAV. The etf trades about -0.03 of its potential returns per unit of risk. The HANetf ICAV is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,338 in HANetf ICAV on September 25, 2024 and sell it today you would earn a total of 70.00 from holding HANetf ICAV or generate 5.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
UBS Fund Solutions vs. HANetf ICAV
Performance |
Timeline |
UBS Fund Solutions |
HANetf ICAV |
UBS Fund and HANetf ICAV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Fund and HANetf ICAV
The main advantage of trading using opposite UBS Fund and HANetf ICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, HANetf ICAV 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 HANetf ICAV will offset losses from the drop in HANetf ICAV's long position.UBS Fund vs. Xtrackers II | UBS Fund vs. Xtrackers Nikkei 225 | UBS Fund vs. iShares VII PLC | UBS Fund vs. SPDR Gold Shares |
HANetf ICAV vs. UBS Fund Solutions | HANetf ICAV vs. Xtrackers II | HANetf ICAV vs. Xtrackers Nikkei 225 | HANetf ICAV vs. iShares VII PLC |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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