Correlation Between Bank of New York and UBS Group
Can any of the company-specific risk be diversified away by investing in both Bank of New York and UBS Group 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 Bank of New York and UBS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Bank of and UBS Group AG, you can compare the effects of market volatilities on Bank of New York and UBS Group 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 Bank of New York with a short position of UBS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and UBS Group.
Diversification Opportunities for Bank of New York and UBS Group
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and UBS is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding The Bank of and UBS Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Group AG and Bank of New York 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 The Bank of are associated (or correlated) with UBS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Group AG has no effect on the direction of Bank of New York i.e., Bank of New York and UBS Group go up and down completely randomly.
Pair Corralation between Bank of New York and UBS Group
Allowing for the 90-day total investment horizon The Bank of is expected to generate 0.84 times more return on investment than UBS Group. However, The Bank of is 1.19 times less risky than UBS Group. It trades about 0.08 of its potential returns per unit of risk. UBS Group AG is currently generating about -0.02 per unit of risk. If you would invest 8,416 in The Bank of on March 22, 2025 and sell it today you would earn a total of 744.00 from holding The Bank of or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Bank of vs. UBS Group AG
Performance |
| Timeline |
| Bank of New York |
| UBS Group AG |
Bank of New York and UBS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and UBS Group
The main advantage of trading using opposite Bank of New York and UBS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, UBS Group 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 Group will offset losses from the drop in UBS Group's long position.| Bank of New York vs. Northern Trust | Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price |
| UBS Group vs. Citigroup | UBS Group vs. Barclays PLC ADR | UBS Group vs. HSBC Holdings PLC | UBS Group vs. Nu Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |