Correlation Between UBS Fund and Multi Units

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

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

Diversification Opportunities for UBS Fund and Multi Units

0.78

Correlation Coefficient

UBS Fund  Multi Units

Poor diversification

The 3 months correlation between UBS and Multi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and Multi Units France in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Units France and UBS Fund 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 Fund Solutions are associated (or correlated) with Multi Units. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Units France has no effect on the direction of UBS Fund i.e., UBS Fund and Multi Units go up and down completely randomly.

Pair Corralation between UBS Fund and Multi Units

Assuming the 90 days trading horizon UBS Fund is expected to generate 3.61 times less return on investment than Multi Units. In addition to that, UBS Fund is 1.11 times more volatile than Multi Units France. It trades about 0.03 of its total potential returns per unit of risk. Multi Units France is currently generating about 0.12 per unit of volatility. If you would invest  5,567  in Multi Units France on April 23, 2025 and sell it today you would earn a total of  351.00  from holding Multi Units France or generate 6.31% return on investment over 90 days.

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

UBS Fund Solutions  vs.  Multi Units France

UBS Fund Solutions

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in UBS Fund Solutions are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, UBS Fund is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Multi Units France

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Units France are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Multi Units may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with UBS Fund and Multi Units

The main advantage of trading using opposite UBS Fund and Multi Units positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, Multi Units 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 Multi Units will offset losses from the drop in Multi Units' long position.

The idea behind UBS Fund Solutions and Multi Units France 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.