Correlation Between UBS ETF and IShares SP
Can any of the company-specific risk be diversified away by investing in both UBS ETF and IShares SP 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 IShares SP 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 iShares SP 500, you can compare the effects of market volatilities on UBS ETF and IShares SP 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 IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and IShares SP.
Diversification Opportunities for UBS ETF and IShares SP
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UBS and IShares is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF MSCI and iShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP 500 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 IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP 500 has no effect on the direction of UBS ETF i.e., UBS ETF and IShares SP go up and down completely randomly.
Pair Corralation between UBS ETF and IShares SP
Assuming the 90 days trading horizon UBS ETF is expected to generate 2.59 times less return on investment than IShares SP. In addition to that, UBS ETF is 1.17 times more volatile than iShares SP 500. It trades about 0.11 of its total potential returns per unit of risk. iShares SP 500 is currently generating about 0.34 per unit of volatility. If you would invest 5,843 in iShares SP 500 on September 19, 2024 and sell it today you would earn a total of 173.00 from holding iShares SP 500 or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS ETF MSCI vs. iShares SP 500
Performance |
| Timeline |
| UBS ETF MSCI |
| iShares SP 500 |
UBS ETF and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS ETF and IShares SP
The main advantage of trading using opposite UBS ETF and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, IShares SP 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 SP will offset losses from the drop in IShares SP's long position.| UBS ETF vs. Baloise Holding AG | UBS ETF vs. 21Shares Polkadot ETP | UBS ETF vs. BB Biotech AG | UBS ETF vs. Amundi Index Solutions |
| IShares SP vs. Baloise Holding AG | IShares SP vs. 21Shares Polkadot ETP | IShares SP vs. UBS ETF MSCI | IShares SP 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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