Correlation Between Amundi Index and UBS Barclays
Can any of the company-specific risk be diversified away by investing in both Amundi Index and UBS Barclays 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 Index and UBS Barclays into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and UBS Barclays Liquid, you can compare the effects of market volatilities on Amundi Index and UBS Barclays 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 Index with a short position of UBS Barclays. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and UBS Barclays.
Diversification Opportunities for Amundi Index and UBS Barclays
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and UBS is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and UBS Barclays Liquid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Barclays Liquid and Amundi Index 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 Index Solutions are associated (or correlated) with UBS Barclays. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Barclays Liquid has no effect on the direction of Amundi Index i.e., Amundi Index and UBS Barclays go up and down completely randomly.
Pair Corralation between Amundi Index and UBS Barclays
Assuming the 90 days trading horizon Amundi Index Solutions is expected to generate 2.12 times more return on investment than UBS Barclays. However, Amundi Index is 2.12 times more volatile than UBS Barclays Liquid. It trades about 0.04 of its potential returns per unit of risk. UBS Barclays Liquid is currently generating about 0.05 per unit of risk. If you would invest 277,975 in Amundi Index Solutions on November 19, 2024 and sell it today you would earn a total of 52,525 from holding Amundi Index Solutions or generate 18.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. UBS Barclays Liquid
Performance |
| Timeline |
| Amundi Index Solutions |
| UBS Barclays Liquid |
Amundi Index and UBS Barclays Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and UBS Barclays
The main advantage of trading using opposite Amundi Index and UBS Barclays positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, UBS Barclays 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 Barclays will offset losses from the drop in UBS Barclays' long position.| Amundi Index vs. Amundi EUR High | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Pacific | Amundi Index vs. Amundi MSCI Europe |
| UBS Barclays vs. UBS ETF | UBS Barclays vs. UBS ETF plc | UBS Barclays vs. UBS ETF plc | UBS Barclays 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |