Correlation Between UBS ETF and Amundi MSCI
Can any of the company-specific risk be diversified away by investing in both UBS ETF and Amundi MSCI 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 MSCI 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 MSCI Emerging, you can compare the effects of market volatilities on UBS ETF and Amundi MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and Amundi MSCI.
Diversification Opportunities for UBS ETF and Amundi MSCI
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UBS and Amundi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF MSCI and Amundi MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI Emerging 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI Emerging has no effect on the direction of UBS ETF i.e., UBS ETF and Amundi MSCI go up and down completely randomly.
Pair Corralation between UBS ETF and Amundi MSCI
Assuming the 90 days trading horizon UBS ETF MSCI is expected to generate 0.62 times more return on investment than Amundi MSCI. However, UBS ETF MSCI is 1.62 times less risky than Amundi MSCI. It trades about 0.04 of its potential returns per unit of risk. Amundi MSCI Emerging is currently generating about -0.08 per unit of risk. If you would invest 1,980 in UBS ETF MSCI on September 14, 2024 and sell it today you would earn a total of 8.00 from holding UBS ETF MSCI or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS ETF MSCI vs. Amundi MSCI Emerging
Performance |
| Timeline |
| UBS ETF MSCI |
| Amundi MSCI Emerging |
UBS ETF and Amundi MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETF and Amundi MSCI
The main advantage of trading using opposite UBS ETF and Amundi MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, Amundi MSCI 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 MSCI will offset losses from the drop in Amundi MSCI's long position.The idea behind UBS ETF MSCI and Amundi MSCI Emerging 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 MSCI vs. Baloise Holding AG | Amundi MSCI vs. 21Shares Polkadot ETP | Amundi MSCI vs. UBS ETF MSCI | Amundi MSCI vs. BB Biotech AG |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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