Correlation Between MULTI UNITS and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both MULTI UNITS 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 MULTI UNITS and UBSFund Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MULTI UNITS LUXEMBOURG and UBSFund Solutions MSCI, you can compare the effects of market volatilities on MULTI UNITS 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 MULTI UNITS with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of MULTI UNITS and UBSFund Solutions.
Diversification Opportunities for MULTI UNITS and UBSFund Solutions
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MULTI and UBSFund is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MULTI UNITS LUXEMBOURG 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 MULTI UNITS 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 MULTI UNITS LUXEMBOURG 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 MULTI UNITS i.e., MULTI UNITS and UBSFund Solutions go up and down completely randomly.
Pair Corralation between MULTI UNITS and UBSFund Solutions
Assuming the 90 days trading horizon MULTI UNITS LUXEMBOURG is expected to under-perform the UBSFund Solutions. In addition to that, MULTI UNITS is 4.87 times more volatile than UBSFund Solutions MSCI. It trades about -0.2 of its total potential returns per unit of risk. UBSFund Solutions MSCI is currently generating about 0.28 per unit of volatility. If you would invest 4,683 in UBSFund Solutions MSCI on September 4, 2024 and sell it today you would earn a total of 286.00 from holding UBSFund Solutions MSCI or generate 6.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MULTI UNITS LUXEMBOURG vs. UBSFund Solutions MSCI
Performance |
| Timeline |
| MULTI UNITS LUXEMBOURG |
| UBSFund Solutions MSCI |
MULTI UNITS and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MULTI UNITS and UBSFund Solutions
The main advantage of trading using opposite MULTI UNITS and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MULTI UNITS 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.| MULTI UNITS vs. UBSFund Solutions MSCI | MULTI UNITS vs. Vanguard SP 500 | MULTI UNITS vs. iShares VII PLC | MULTI UNITS vs. iShares Core SP |
| UBSFund Solutions vs. Vanguard SP 500 | UBSFund Solutions vs. iShares VII PLC | UBSFund Solutions vs. iShares Core SP | UBSFund Solutions vs. Lyxor Japan UCITS |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets |