Correlation Between UBSFund Solutions and IShares Core
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and IShares Core 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 UBSFund Solutions and IShares Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBSFund Solutions Bloomberg and iShares Core SP, you can compare the effects of market volatilities on UBSFund Solutions and IShares Core 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 UBSFund Solutions with a short position of IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and IShares Core.
Diversification Opportunities for UBSFund Solutions and IShares Core
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBSFund and IShares is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions Bloomberg and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP and UBSFund Solutions 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 UBSFund Solutions Bloomberg are associated (or correlated) with IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core SP has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and IShares Core go up and down completely randomly.
Pair Corralation between UBSFund Solutions and IShares Core
Assuming the 90 days trading horizon UBSFund Solutions is expected to generate 3.89 times less return on investment than IShares Core. But when comparing it to its historical volatility, UBSFund Solutions Bloomberg is 3.32 times less risky than IShares Core. It trades about 0.11 of its potential returns per unit of risk. iShares Core SP is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 56,200 in iShares Core SP on September 3, 2024 and sell it today you would earn a total of 7,760 from holding iShares Core SP or generate 13.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.88% |
| Values | Daily Returns |
UBSFund Solutions Bloomberg vs. iShares Core SP
Performance |
| Timeline |
| UBSFund Solutions |
| iShares Core SP |
UBSFund Solutions and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and IShares Core
The main advantage of trading using opposite UBSFund Solutions and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. Vanguard SP 500 | UBSFund Solutions vs. iShares VII PLC | UBSFund Solutions vs. iShares Core SP |
| IShares Core vs. iShares Corp Bond | IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core vs. iShares VII PLC |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |