Correlation Between UBSETF GOLD and International Business
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By analyzing existing cross correlation between UBSETF GOLD USD and International Business Machines, you can compare the effects of market volatilities on UBSETF GOLD and International Business 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 UBSETF GOLD with a short position of International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSETF GOLD and International Business.
Diversification Opportunities for UBSETF GOLD and International Business
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between UBSETF and International is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding UBSETF GOLD USD and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business and UBSETF GOLD 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 UBSETF GOLD USD are associated (or correlated) with International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of UBSETF GOLD i.e., UBSETF GOLD and International Business go up and down completely randomly.
Pair Corralation between UBSETF GOLD and International Business
Assuming the 90 days trading horizon UBSETF GOLD USD is expected to generate 1.24 times more return on investment than International Business. However, UBSETF GOLD is 1.24 times more volatile than International Business Machines. It trades about 0.3 of its potential returns per unit of risk. International Business Machines is currently generating about -0.12 per unit of risk. If you would invest 6,991 in UBSETF GOLD USD on January 26, 2024 and sell it today you would earn a total of 491.00 from holding UBSETF GOLD USD or generate 7.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
UBSETF GOLD USD vs. International Business Machine
Performance |
Timeline |
UBSETF GOLD USD |
International Business |
UBSETF GOLD and International Business Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBSETF GOLD and International Business
The main advantage of trading using opposite UBSETF GOLD and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSETF GOLD position performs unexpectedly, International Business 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 International Business will offset losses from the drop in International Business' long position.The idea behind UBSETF GOLD USD and International Business Machines 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.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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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