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
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBS and Amundi is 0.74. 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 generate 0.6 times more return on investment than Amundi Index. However, UBS ETF MSCI is 1.66 times less risky than Amundi Index. It trades about 0.04 of its potential returns per unit of risk. Amundi Index Solutions is currently generating about -0.03 per unit of risk. If you would invest 1,676 in UBS ETF MSCI on September 24, 2024 and sell it today you would earn a total of 266.00 from holding UBS ETF MSCI or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| 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.| UBS ETF vs. UBSFund Solutions MSCI | UBS ETF vs. Vanguard SP 500 | UBS ETF vs. iShares VII PLC | UBS ETF vs. iShares Core SP |
| Amundi Index vs. UBSFund Solutions MSCI | Amundi Index vs. Vanguard SP 500 | Amundi Index vs. iShares VII PLC | Amundi Index vs. iShares Core SP |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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