Correlation Between Federated Municipal and Ubs Us
Can any of the company-specific risk be diversified away by investing in both Federated Municipal and Ubs Us 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 Federated Municipal and Ubs Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Municipal High and Ubs Allocation Fund, you can compare the effects of market volatilities on Federated Municipal and Ubs Us 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 Federated Municipal with a short position of Ubs Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Municipal and Ubs Us.
Diversification Opportunities for Federated Municipal and Ubs Us
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FEDERATED and Ubs is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Federated Municipal High and Ubs Allocation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Allocation and Federated Municipal 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 Federated Municipal High are associated (or correlated) with Ubs Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Allocation has no effect on the direction of Federated Municipal i.e., Federated Municipal and Ubs Us go up and down completely randomly.
Pair Corralation between Federated Municipal and Ubs Us
Assuming the 90 days horizon Federated Municipal is expected to generate 3.59 times less return on investment than Ubs Us. But when comparing it to its historical volatility, Federated Municipal High is 2.48 times less risky than Ubs Us. It trades about 0.07 of its potential returns per unit of risk. Ubs Allocation Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,880 in Ubs Allocation Fund on August 28, 2025 and sell it today you would earn a total of 1,598 from holding Ubs Allocation Fund or generate 41.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Municipal High vs. Ubs Allocation Fund
Performance |
| Timeline |
| Federated Municipal High |
| Ubs Allocation |
Federated Municipal and Ubs Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Municipal and Ubs Us
The main advantage of trading using opposite Federated Municipal and Ubs Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Municipal position performs unexpectedly, Ubs Us 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 Us will offset losses from the drop in Ubs Us' long position.| Federated Municipal vs. Deutsche Health And | Federated Municipal vs. Lord Abbett Health | Federated Municipal vs. Putnam Global Health | Federated Municipal vs. Prudential Health Sciences |
| Ubs Us vs. Mid Cap Value Profund | Ubs Us vs. Ultrasmall Cap Profund Ultrasmall Cap | Ubs Us vs. Small Cap Growth Profund | Ubs Us vs. Ultramid Cap Profund Ultramid Cap |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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