Correlation Between IShares SP and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both IShares SP 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 SP 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 SP 500 and UBSFund Solutions MSCI, you can compare the effects of market volatilities on IShares SP 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 SP with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares SP and UBSFund Solutions.
Diversification Opportunities for IShares SP and UBSFund Solutions
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between IShares and UBSFund is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding iShares SP 500 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 SP 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 SP 500 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 SP i.e., IShares SP and UBSFund Solutions go up and down completely randomly.
Pair Corralation between IShares SP and UBSFund Solutions
Assuming the 90 days trading horizon iShares SP 500 is expected to under-perform the UBSFund Solutions. In addition to that, IShares SP is 1.0 times more volatile than UBSFund Solutions MSCI. It trades about -0.25 of its total potential returns per unit of risk. UBSFund Solutions MSCI is currently generating about -0.13 per unit of volatility. If you would invest 12,046 in UBSFund Solutions MSCI on August 24, 2024 and sell it today you would lose (294.00) from holding UBSFund Solutions MSCI or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares SP 500 vs. UBSFund Solutions MSCI
Performance |
| Timeline |
| iShares SP 500 |
| UBSFund Solutions MSCI |
IShares SP and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares SP and UBSFund Solutions
The main advantage of trading using opposite IShares SP and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares SP 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 SP vs. SPDR Dow Jones | IShares SP vs. iShares Core MSCI | IShares SP vs. iShares Global Aggregate | IShares SP vs. iShares MSCI World |
| UBSFund Solutions vs. SPDR Dow Jones | UBSFund Solutions vs. iShares Core MSCI | UBSFund Solutions vs. iShares SP 500 | UBSFund Solutions vs. iShares Global Aggregate |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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