Correlation Between IShares MSCI and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both IShares MSCI 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 MSCI 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 MSCI Korea and UBSFund Solutions MSCI, you can compare the effects of market volatilities on IShares MSCI 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 MSCI with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and UBSFund Solutions.
Diversification Opportunities for IShares MSCI and UBSFund Solutions
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and UBSFund is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Korea 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 MSCI 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 MSCI Korea 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 MSCI i.e., IShares MSCI and UBSFund Solutions go up and down completely randomly.
Pair Corralation between IShares MSCI and UBSFund Solutions
Assuming the 90 days trading horizon iShares MSCI Korea is expected to under-perform the UBSFund Solutions. But the etf apears to be less risky and, when comparing its historical volatility, iShares MSCI Korea is 1.03 times less risky than UBSFund Solutions. The etf trades about -0.07 of its potential returns per unit of risk. The UBSFund Solutions MSCI is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 5,015 in UBSFund Solutions MSCI on September 3, 2024 and sell it today you would lose (179.00) from holding UBSFund Solutions MSCI or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.95% |
| Values | Daily Returns |
iShares MSCI Korea vs. UBSFund Solutions MSCI
Performance |
| Timeline |
| iShares MSCI Korea |
| UBSFund Solutions MSCI |
IShares MSCI and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares MSCI and UBSFund Solutions
The main advantage of trading using opposite IShares MSCI and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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 MSCI vs. UBSFund Solutions MSCI | IShares MSCI vs. Vanguard SP 500 | IShares MSCI vs. iShares VII PLC | IShares MSCI 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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