Correlation Between Touchstone Premium and Ubs Ultra
Can any of the company-specific risk be diversified away by investing in both Touchstone Premium and Ubs Ultra 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 Touchstone Premium and Ubs Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Premium Yield and Ubs Ultra Short, you can compare the effects of market volatilities on Touchstone Premium and Ubs Ultra 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 Touchstone Premium with a short position of Ubs Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Premium and Ubs Ultra.
Diversification Opportunities for Touchstone Premium and Ubs Ultra
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Touchstone and Ubs is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Premium Yield and Ubs Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Ultra Short and Touchstone Premium 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 Touchstone Premium Yield are associated (or correlated) with Ubs Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Ultra Short has no effect on the direction of Touchstone Premium i.e., Touchstone Premium and Ubs Ultra go up and down completely randomly.
Pair Corralation between Touchstone Premium and Ubs Ultra
Assuming the 90 days horizon Touchstone Premium Yield is expected to generate 12.45 times more return on investment than Ubs Ultra. However, Touchstone Premium is 12.45 times more volatile than Ubs Ultra Short. It trades about 0.07 of its potential returns per unit of risk. Ubs Ultra Short is currently generating about 0.22 per unit of risk. If you would invest 666.00 in Touchstone Premium Yield on March 29, 2025 and sell it today you would earn a total of 273.00 from holding Touchstone Premium Yield or generate 40.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Premium Yield vs. Ubs Ultra Short
Performance |
| Timeline |
| Touchstone Premium Yield |
| Ubs Ultra Short |
Touchstone Premium and Ubs Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Premium and Ubs Ultra
The main advantage of trading using opposite Touchstone Premium and Ubs Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Premium position performs unexpectedly, Ubs Ultra 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 Ultra will offset losses from the drop in Ubs Ultra's long position.| Touchstone Premium vs. Gmo Emerging Markets | Touchstone Premium vs. Bbh Trust | Touchstone Premium vs. Touchstone Sands Capital | Touchstone Premium vs. Aqr Diversified Arbitrage |
| Ubs Ultra vs. Gabelli Gold Fund | Ubs Ultra vs. James Balanced Golden | Ubs Ultra vs. Oppenheimer Gold Special | Ubs Ultra vs. Europac Gold Fund |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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