Correlation Between UBSFund Solutions and BNP Paribas
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and BNP Paribas 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 UBSFund Solutions and BNP Paribas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBSFund Solutions MSCI and BNP Paribas Easy, you can compare the effects of market volatilities on UBSFund Solutions and BNP Paribas 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 UBSFund Solutions with a short position of BNP Paribas. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and BNP Paribas.
Diversification Opportunities for UBSFund Solutions and BNP Paribas
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UBSFund and BNP is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions MSCI and BNP Paribas Easy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BNP Paribas Easy and UBSFund Solutions 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 UBSFund Solutions MSCI are associated (or correlated) with BNP Paribas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BNP Paribas Easy has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and BNP Paribas go up and down completely randomly.
Pair Corralation between UBSFund Solutions and BNP Paribas
Assuming the 90 days trading horizon UBSFund Solutions MSCI is expected to generate 1.75 times more return on investment than BNP Paribas. However, UBSFund Solutions is 1.75 times more volatile than BNP Paribas Easy. It trades about 0.0 of its potential returns per unit of risk. BNP Paribas Easy is currently generating about -0.06 per unit of risk. If you would invest 4,844 in UBSFund Solutions MSCI on September 2, 2024 and sell it today you would lose (8.00) from holding UBSFund Solutions MSCI or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.97% |
| Values | Daily Returns |
UBSFund Solutions MSCI vs. BNP Paribas Easy
Performance |
| Timeline |
| UBSFund Solutions MSCI |
| BNP Paribas Easy |
UBSFund Solutions and BNP Paribas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and BNP Paribas
The main advantage of trading using opposite UBSFund Solutions and BNP Paribas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, BNP Paribas 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 BNP Paribas will offset losses from the drop in BNP Paribas' long position.| UBSFund Solutions vs. iShares Core SP | UBSFund Solutions vs. iShares Core MSCI | UBSFund Solutions vs. Lyxor UCITS Stoxx |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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