Correlation Between IShares MSCI and UBS
Can any of the company-specific risk be diversified away by investing in both IShares MSCI and UBS 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 IShares MSCI and UBS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI ACWI and UBS, you can compare the effects of market volatilities on IShares MSCI and UBS 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 IShares MSCI with a short position of UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and UBS.
Diversification Opportunities for IShares MSCI and UBS
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and UBS is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI ACWI and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS and IShares MSCI 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 iShares MSCI ACWI are associated (or correlated) with UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of IShares MSCI i.e., IShares MSCI and UBS go up and down completely randomly.
Pair Corralation between IShares MSCI and UBS
If you would invest 10,034 in iShares MSCI ACWI on September 14, 2024 and sell it today you would earn a total of 2,186 from holding iShares MSCI ACWI or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
iShares MSCI ACWI vs. UBS
Performance |
| Timeline |
| iShares MSCI ACWI |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IShares MSCI and UBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and UBS
The main advantage of trading using opposite IShares MSCI and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI position performs unexpectedly, UBS 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 will offset losses from the drop in UBS's long position.| IShares MSCI vs. iShares MSCI ACWI | IShares MSCI vs. iShares MSCI All | IShares MSCI vs. iShares MSCI EAFE | IShares MSCI vs. iShares JP Morgan |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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