Correlation Between UBS and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both UBS and IShares 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 and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS and iShares MSCI France, you can compare the effects of market volatilities on UBS and IShares 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 with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS and IShares MSCI.
Diversification Opportunities for UBS and IShares MSCI
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBS and IShares is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding UBS and iShares MSCI France in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI France and UBS 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 are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI France has no effect on the direction of UBS i.e., UBS and IShares MSCI go up and down completely randomly.
Pair Corralation between UBS and IShares MSCI
If you would invest 3,639 in iShares MSCI France on September 13, 2024 and sell it today you would earn a total of 36.00 from holding iShares MSCI France or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
UBS vs. iShares MSCI France
Performance |
| Timeline |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| iShares MSCI France |
UBS and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS and IShares MSCI
The main advantage of trading using opposite UBS and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS position performs unexpectedly, IShares 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| UBS vs. iShares MSCI France | UBS vs. iShares Europe ETF | UBS vs. iShares MSCI United | UBS vs. iShares MSCI Spain |
| IShares MSCI vs. iShares MSCI Italy | IShares MSCI vs. iShares MSCI Netherlands | IShares MSCI vs. iShares MSCI Spain | IShares MSCI vs. iShares MSCI Belgium |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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