Correlation Between Amundi Index and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both Amundi Index and UBSFund Solutions 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 UBSFund Solutions 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 UBSFund Solutions Bloomberg, you can compare the effects of market volatilities on Amundi Index and UBSFund Solutions 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 UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and UBSFund Solutions.
Diversification Opportunities for Amundi Index and UBSFund Solutions
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Amundi and UBSFund is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and UBSFund Solutions Bloomberg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions 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 UBSFund Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBSFund Solutions has no effect on the direction of Amundi Index i.e., Amundi Index and UBSFund Solutions go up and down completely randomly.
Pair Corralation between Amundi Index and UBSFund Solutions
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the UBSFund Solutions. In addition to that, Amundi Index is 5.89 times more volatile than UBSFund Solutions Bloomberg. It trades about -0.06 of its total potential returns per unit of risk. UBSFund Solutions Bloomberg is currently generating about 0.13 per unit of volatility. If you would invest 126,825 in UBSFund Solutions Bloomberg on October 22, 2024 and sell it today you would earn a total of 475.00 from holding UBSFund Solutions Bloomberg or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. UBSFund Solutions Bloomberg
Performance |
| Timeline |
| Amundi Index Solutions |
| UBSFund Solutions |
Amundi Index and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and UBSFund Solutions
The main advantage of trading using opposite Amundi Index and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, UBSFund Solutions 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 UBSFund Solutions will offset losses from the drop in UBSFund Solutions' 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 |
| UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions JP |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |