Correlation Between Ubs Us and Fidelity Strategic
Can any of the company-specific risk be diversified away by investing in both Ubs Us and Fidelity Strategic 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 Us and Fidelity Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubs Allocation Fund and Fidelity Strategic Dividend, you can compare the effects of market volatilities on Ubs Us and Fidelity Strategic 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 Us with a short position of Fidelity Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubs Us and Fidelity Strategic.
Diversification Opportunities for Ubs Us and Fidelity Strategic
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ubs and Fidelity is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ubs Allocation Fund and Fidelity Strategic Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Strategic and Ubs Us 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 Allocation Fund are associated (or correlated) with Fidelity Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Strategic has no effect on the direction of Ubs Us i.e., Ubs Us and Fidelity Strategic go up and down completely randomly.
Pair Corralation between Ubs Us and Fidelity Strategic
Assuming the 90 days horizon Ubs Allocation Fund is expected to under-perform the Fidelity Strategic. In addition to that, Ubs Us is 1.15 times more volatile than Fidelity Strategic Dividend. It trades about -0.1 of its total potential returns per unit of risk. Fidelity Strategic Dividend is currently generating about -0.1 per unit of volatility. If you would invest 1,634 in Fidelity Strategic Dividend on February 5, 2024 and sell it today you would lose (21.00) from holding Fidelity Strategic Dividend or give up 1.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ubs Allocation Fund vs. Fidelity Strategic Dividend
Performance |
Timeline |
Ubs Allocation |
Fidelity Strategic |
Ubs Us and Fidelity Strategic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ubs Us and Fidelity Strategic
The main advantage of trading using opposite Ubs Us and Fidelity Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubs Us position performs unexpectedly, Fidelity Strategic 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 Fidelity Strategic will offset losses from the drop in Fidelity Strategic's long position.Ubs Us vs. Pace Smallmedium Value | Ubs Us vs. Pace International Equity | Ubs Us vs. Pace Mortgage Backed Securities | Ubs Us vs. Pace Mortgage Backed Securities |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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