Correlation Between Amundi Index and UBS ETF
Can any of the company-specific risk be diversified away by investing in both Amundi Index and UBS ETF 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 ETF 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 ETF MSCI, you can compare the effects of market volatilities on Amundi Index and UBS ETF 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 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and UBS ETF.
Diversification Opportunities for Amundi Index and UBS ETF
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amundi and UBS is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and UBS ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETF MSCI 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 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETF MSCI has no effect on the direction of Amundi Index i.e., Amundi Index and UBS ETF go up and down completely randomly.
Pair Corralation between Amundi Index and UBS ETF
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the UBS ETF. In addition to that, Amundi Index is 3.05 times more volatile than UBS ETF MSCI. It trades about -0.24 of its total potential returns per unit of risk. UBS ETF MSCI is currently generating about 0.07 per unit of volatility. If you would invest 1,961 in UBS ETF MSCI on September 20, 2024 and sell it today you would earn a total of 14.00 from holding UBS ETF MSCI or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amundi Index Solutions vs. UBS ETF MSCI
Performance |
| Timeline |
| Amundi Index Solutions |
| UBS ETF MSCI |
Amundi Index and UBS ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and UBS ETF
The main advantage of trading using opposite Amundi Index and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, UBS ETF 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 ETF will offset losses from the drop in UBS ETF's long position.| Amundi Index vs. Baloise Holding AG | Amundi Index vs. 21Shares Polkadot ETP | Amundi Index vs. UBS ETF MSCI | Amundi Index vs. BB Biotech AG |
| UBS ETF vs. Baloise Holding AG | UBS ETF vs. 21Shares Polkadot ETP | UBS ETF vs. BB Biotech AG | UBS ETF vs. Amundi Index 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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