Correlation Between UBS ETF and Amundi Index
Can any of the company-specific risk be diversified away by investing in both UBS ETF and Amundi Index 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 UBS ETF and Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS ETF MSCI and Amundi Index Solutions, you can compare the effects of market volatilities on UBS ETF and Amundi Index 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 UBS ETF with a short position of Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and Amundi Index.
Diversification Opportunities for UBS ETF and Amundi Index
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBS and Amundi is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF MSCI and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions and UBS ETF 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 UBS ETF MSCI are associated (or correlated) with Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of UBS ETF i.e., UBS ETF and Amundi Index go up and down completely randomly.
Pair Corralation between UBS ETF and Amundi Index
Assuming the 90 days trading horizon UBS ETF MSCI is expected to under-perform the Amundi Index. But the etf apears to be less risky and, when comparing its historical volatility, UBS ETF MSCI is 1.28 times less risky than Amundi Index. The etf trades about -0.1 of its potential returns per unit of risk. The Amundi Index Solutions is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 11,308 in Amundi Index Solutions on September 2, 2024 and sell it today you would earn a total of 526.00 from holding Amundi Index Solutions or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS ETF MSCI vs. Amundi Index Solutions
Performance |
| Timeline |
| UBS ETF MSCI |
| Amundi Index Solutions |
UBS ETF and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETF and Amundi Index
The main advantage of trading using opposite UBS ETF and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index's long position.The idea behind UBS ETF MSCI and Amundi Index Solutions pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Amundi Index vs. iShares Core SP | Amundi Index vs. iShares Core MSCI | Amundi Index vs. Lyxor UCITS Stoxx |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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