Correlation Between UBS Group and Barclays PLC
Can any of the company-specific risk be diversified away by investing in both UBS Group and Barclays PLC 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 Group and Barclays PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Group AG and Barclays PLC ADR, you can compare the effects of market volatilities on UBS Group and Barclays PLC 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 Group with a short position of Barclays PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Group and Barclays PLC.
Diversification Opportunities for UBS Group and Barclays PLC
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between UBS and Barclays is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding UBS Group AG and Barclays PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays PLC ADR and UBS Group 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 Group AG are associated (or correlated) with Barclays PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays PLC ADR has no effect on the direction of UBS Group i.e., UBS Group and Barclays PLC go up and down completely randomly.
Pair Corralation between UBS Group and Barclays PLC
Considering the 90-day investment horizon UBS Group is expected to generate 8.54 times less return on investment than Barclays PLC. In addition to that, UBS Group is 1.51 times more volatile than Barclays PLC ADR. It trades about 0.02 of its total potential returns per unit of risk. Barclays PLC ADR is currently generating about 0.2 per unit of volatility. If you would invest 1,670 in Barclays PLC ADR on March 13, 2025 and sell it today you would earn a total of 88.00 from holding Barclays PLC ADR or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS Group AG vs. Barclays PLC ADR
Performance |
| Timeline |
| UBS Group AG |
| Barclays PLC ADR |
UBS Group and Barclays PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Group and Barclays PLC
The main advantage of trading using opposite UBS Group and Barclays PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Group position performs unexpectedly, Barclays PLC 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 Barclays PLC will offset losses from the drop in Barclays PLC's long position.| UBS Group vs. Citigroup | UBS Group vs. Barclays PLC ADR | UBS Group vs. HSBC Holdings PLC | UBS Group vs. Nu Holdings |
| Barclays PLC vs. Thrivent High Yield | Barclays PLC vs. Morningstar Unconstrained Allocation | Barclays PLC vs. Via Renewables | Barclays PLC vs. T Rowe Price |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |