Correlation Between Chubb and UBS Group

Can any of the company-specific risk be diversified away by investing in both Chubb 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 Chubb and UBS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Chubb and UBS Group AG, you can compare the effects of market volatilities on Chubb 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 Chubb with a short position of UBS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chubb and UBS Group.

Diversification Opportunities for Chubb and UBS Group

0.4

Correlation Coefficient

Chubb  UBS Group

Very weak diversification

The 3 months correlation between Chubb and UBS is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Chubb 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 Chubb 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 Chubb 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 Chubb i.e., Chubb and UBS Group go up and down completely randomly.

Pair Corralation between Chubb and UBS Group

Allowing for the 90-day total investment horizon Chubb is expected to generate 1.14 times more return on investment than UBS Group. However, Chubb is 1.14 times more volatile than UBS Group AG. It trades about -0.04 of its potential returns per unit of risk. UBS Group AG is currently generating about -0.18 per unit of risk. If you would invest  28,137  in Chubb on August 3, 2025 and sell it today you would lose (443.00) from holding Chubb or give up 1.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Chubb  vs.  UBS Group AG

Chubb

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Chubb are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Chubb is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

UBS Group AG

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in UBS Group AG are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental drivers, UBS Group is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Chubb and UBS Group

The main advantage of trading using opposite Chubb and UBS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chubb 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.

The idea behind Chubb and UBS Group AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.