Correlation Between UBS Group and Bank of NT
Can any of the company-specific risk be diversified away by investing in both UBS Group and Bank of NT 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 Bank of NT 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 Bank of NT, you can compare the effects of market volatilities on UBS Group and Bank of NT 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 Bank of NT. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Group and Bank of NT.
Diversification Opportunities for UBS Group and Bank of NT
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBS and Bank is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding UBS Group AG and Bank of NT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of NT 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 Bank of NT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of NT has no effect on the direction of UBS Group i.e., UBS Group and Bank of NT go up and down completely randomly.
Pair Corralation between UBS Group and Bank of NT
Considering the 90-day investment horizon UBS Group AG is expected to under-perform the Bank of NT. In addition to that, UBS Group is 2.36 times more volatile than Bank of NT. It trades about -0.04 of its total potential returns per unit of risk. Bank of NT is currently generating about 0.09 per unit of volatility. If you would invest 4,246 in Bank of NT on March 15, 2025 and sell it today you would earn a total of 61.00 from holding Bank of NT or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
UBS Group AG vs. Bank of NT
Performance |
| Timeline |
| UBS Group AG |
| Bank of NT |
UBS Group and Bank of NT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Group and Bank of NT
The main advantage of trading using opposite UBS Group and Bank of NT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Group position performs unexpectedly, Bank of NT 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 Bank of NT will offset losses from the drop in Bank of NT's long position.| UBS Group vs. Citigroup | UBS Group vs. Barclays PLC ADR | UBS Group vs. HSBC Holdings PLC | UBS Group vs. Nu Holdings |
| Bank of NT vs. PJT Partners | Bank of NT vs. National Bank Holdings | Bank of NT vs. FB Financial Corp | Bank of NT vs. Northrim BanCorp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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