Correlation Between IShares NASDAQ and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both IShares NASDAQ and UBSFund Solutions 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 IShares NASDAQ and UBSFund Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares NASDAQ 100 and UBSFund Solutions MSCI, you can compare the effects of market volatilities on IShares NASDAQ and UBSFund Solutions 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 IShares NASDAQ with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares NASDAQ and UBSFund Solutions.
Diversification Opportunities for IShares NASDAQ and UBSFund Solutions
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IShares and UBSFund is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding iShares NASDAQ 100 and UBSFund Solutions MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions MSCI and IShares NASDAQ 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 iShares NASDAQ 100 are associated (or correlated) with UBSFund Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBSFund Solutions MSCI has no effect on the direction of IShares NASDAQ i.e., IShares NASDAQ and UBSFund Solutions go up and down completely randomly.
Pair Corralation between IShares NASDAQ and UBSFund Solutions
Assuming the 90 days trading horizon iShares NASDAQ 100 is expected to generate 0.87 times more return on investment than UBSFund Solutions. However, iShares NASDAQ 100 is 1.16 times less risky than UBSFund Solutions. It trades about 0.1 of its potential returns per unit of risk. UBSFund Solutions MSCI is currently generating about 0.06 per unit of risk. If you would invest 120,700 in iShares NASDAQ 100 on September 12, 2024 and sell it today you would earn a total of 1,920 from holding iShares NASDAQ 100 or generate 1.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 90.91% |
Values | Daily Returns |
iShares NASDAQ 100 vs. UBSFund Solutions MSCI
Performance |
Timeline |
iShares NASDAQ 100 |
UBSFund Solutions MSCI |
IShares NASDAQ and UBSFund Solutions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares NASDAQ and UBSFund Solutions
The main advantage of trading using opposite IShares NASDAQ and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares NASDAQ position performs unexpectedly, UBSFund Solutions 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 UBSFund Solutions will offset losses from the drop in UBSFund Solutions' long position.IShares NASDAQ vs. Baloise Holding AG | IShares NASDAQ vs. 21Shares Polkadot ETP | IShares NASDAQ vs. UBS ETF MSCI | IShares NASDAQ vs. BB Biotech AG |
UBSFund Solutions vs. Baloise Holding AG | UBSFund Solutions vs. 21Shares Polkadot ETP | UBSFund Solutions vs. UBS ETF MSCI | UBSFund Solutions 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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