Correlation Between UBS ETRACS and T Rowe

Can any of the company-specific risk be diversified away by investing in both UBS ETRACS and T Rowe 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 ETRACS and T Rowe into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UBS ETRACS and T Rowe Price, you can compare the effects of market volatilities on UBS ETRACS and T Rowe 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 ETRACS with a short position of T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETRACS and T Rowe.

Diversification Opportunities for UBS ETRACS and T Rowe

0.0

Correlation Coefficient

UBS ETRACS  T Rowe

Pay attention - limited upside

The 3 months correlation between UBS and TCAF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETRACS and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price and UBS ETRACS 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 ETRACS are associated (or correlated) with T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of UBS ETRACS i.e., UBS ETRACS and T Rowe go up and down completely randomly.

Pair Corralation between UBS ETRACS and T Rowe

If you would invest  1,329  in UBS ETRACS on September 8, 2025 and sell it today you would lose (292.00) from holding UBS ETRACS or give up 21.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

UBS ETRACS   vs.  T Rowe Price

UBS ETRACS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in UBS ETRACS are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, UBS ETRACS exhibited solid returns over the last few months and may actually be approaching a breakup point.

T Rowe Price

Risk-Adjusted Performance

Weakest

Over the last 90 days T Rowe Price has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, T Rowe is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with UBS ETRACS and T Rowe

The main advantage of trading using opposite UBS ETRACS and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETRACS position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind UBS ETRACS and T Rowe Price 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.