Correlation Between IShares European and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both IShares European 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 European 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 European Property and UBSFund Solutions MSCI, you can compare the effects of market volatilities on IShares European 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 European with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares European and UBSFund Solutions.
Diversification Opportunities for IShares European and UBSFund Solutions
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IShares and UBSFund is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding iShares European Property 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 European 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 European Property 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 European i.e., IShares European and UBSFund Solutions go up and down completely randomly.
Pair Corralation between IShares European and UBSFund Solutions
Assuming the 90 days trading horizon iShares European Property is expected to generate 1.24 times more return on investment than UBSFund Solutions. However, IShares European is 1.24 times more volatile than UBSFund Solutions MSCI. It trades about 0.2 of its potential returns per unit of risk. UBSFund Solutions MSCI is currently generating about 0.07 per unit of risk. If you would invest 2,624 in iShares European Property on October 20, 2024 and sell it today you would earn a total of 109.00 from holding iShares European Property or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares European Property vs. UBSFund Solutions MSCI
Performance |
| Timeline |
| iShares European Property |
| UBSFund Solutions MSCI |
IShares European and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares European and UBSFund Solutions
The main advantage of trading using opposite IShares European and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares European 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 European vs. UBSFund Solutions MSCI | IShares European vs. Vanguard SP 500 | IShares European vs. iShares Core SP | IShares European vs. Lyxor Japan UCITS |
| UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions Bloomberg | UBSFund Solutions vs. UBSFund Solutions MSCI | UBSFund Solutions vs. UBSFund Solutions Bloomberg |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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