Correlation Between Amundi Index and UBS Fund
Can any of the company-specific risk be diversified away by investing in both Amundi Index 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 Index 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 Index Solutions and UBS Fund Solutions, you can compare the effects of market volatilities on Amundi Index 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 Index with a short position of UBS Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and UBS Fund.
Diversification Opportunities for Amundi Index and UBS Fund
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Amundi and UBS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions 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 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 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 Index i.e., Amundi Index and UBS Fund go up and down completely randomly.
Pair Corralation between Amundi Index and UBS Fund
Assuming the 90 days trading horizon Amundi Index is expected to generate 1.46 times less return on investment than UBS Fund. In addition to that, Amundi Index is 1.61 times more volatile than UBS Fund Solutions. It trades about 0.09 of its total potential returns per unit of risk. UBS Fund Solutions is currently generating about 0.22 per unit of volatility. If you would invest 123,620 in UBS Fund Solutions on September 13, 2024 and sell it today you would earn a total of 3,340 from holding UBS Fund Solutions or generate 2.7% 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 Fund Solutions
Performance |
| Timeline |
| Amundi Index Solutions |
| UBS Fund Solutions |
Amundi Index and UBS Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and UBS Fund
The main advantage of trading using opposite Amundi Index and UBS Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index 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 Index vs. Amundi EUR High | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI Pacific | Amundi Index vs. Amundi MSCI Europe |
| UBS Fund vs. UBS ETF | UBS Fund vs. UBS ETF plc | UBS Fund vs. UBS ETF plc | UBS Fund vs. UBS Barclays Liquid |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Transaction History View history of all your transactions and understand their impact on performance |