Correlation Between Amundi ETF and UBS Fund
Can any of the company-specific risk be diversified away by investing in both Amundi ETF and UBS Fund 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 Amundi ETF and UBS Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi ETF MSCI and UBS Fund Solutions, you can compare the effects of market volatilities on Amundi ETF and UBS Fund 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 Amundi ETF with a short position of UBS Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi ETF and UBS Fund.
Diversification Opportunities for Amundi ETF and UBS Fund
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Amundi and UBS is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amundi ETF MSCI and UBS Fund Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Fund Solutions and Amundi ETF 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 Amundi ETF MSCI are associated (or correlated) with UBS Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Fund Solutions has no effect on the direction of Amundi ETF i.e., Amundi ETF and UBS Fund go up and down completely randomly.
Pair Corralation between Amundi ETF and UBS Fund
Assuming the 90 days trading horizon Amundi ETF MSCI is expected to under-perform the UBS Fund. But the etf apears to be less risky and, when comparing its historical volatility, Amundi ETF MSCI is 1.66 times less risky than UBS Fund. The etf trades about -0.05 of its potential returns per unit of risk. The UBS Fund Solutions is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,002 in UBS Fund Solutions on September 3, 2024 and sell it today you would earn a total of 209.00 from holding UBS Fund Solutions or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi ETF MSCI vs. UBS Fund Solutions
Performance |
| Timeline |
| Amundi ETF MSCI |
| UBS Fund Solutions |
Amundi ETF and UBS Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi ETF and UBS Fund
The main advantage of trading using opposite Amundi ETF and UBS Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi ETF position performs unexpectedly, UBS Fund 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 Fund will offset losses from the drop in UBS Fund's long position.| Amundi ETF vs. Amundi MSCI Europe | Amundi ETF vs. Amundi SP 500 | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Euro Stoxx |
| UBS Fund vs. UBS Barclays Liquid | UBS Fund vs. UBS ETF Public | UBS Fund vs. UBS ETF SICAV | UBS Fund vs. UBS Fund Solutions |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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