Correlation Between UBSFund Solutions and SPDR FTSE
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and SPDR FTSE 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 SPDR FTSE 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 SPDR FTSE UK, you can compare the effects of market volatilities on UBSFund Solutions and SPDR FTSE 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 SPDR FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and SPDR FTSE.
Diversification Opportunities for UBSFund Solutions and SPDR FTSE
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between UBSFund and SPDR is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions MSCI and SPDR FTSE UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR FTSE UK 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 SPDR FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR FTSE UK has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and SPDR FTSE go up and down completely randomly.
Pair Corralation between UBSFund Solutions and SPDR FTSE
Assuming the 90 days trading horizon UBSFund Solutions MSCI is expected to generate 0.54 times more return on investment than SPDR FTSE. However, UBSFund Solutions MSCI is 1.86 times less risky than SPDR FTSE. It trades about 0.04 of its potential returns per unit of risk. SPDR FTSE UK is currently generating about 0.02 per unit of risk. If you would invest 4,152 in UBSFund Solutions MSCI on September 4, 2024 and sell it today you would earn a total of 869.00 from holding UBSFund Solutions MSCI or generate 20.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
UBSFund Solutions MSCI vs. SPDR FTSE UK
Performance |
| Timeline |
| UBSFund Solutions MSCI |
| SPDR FTSE UK |
UBSFund Solutions and SPDR FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and SPDR FTSE
The main advantage of trading using opposite UBSFund Solutions and SPDR FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, SPDR FTSE 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 SPDR FTSE will offset losses from the drop in SPDR FTSE's long position.| UBSFund Solutions vs. Vanguard SP 500 | UBSFund Solutions vs. iShares VII PLC | UBSFund Solutions vs. iShares Core SP | UBSFund Solutions vs. Lyxor Japan UCITS |
| SPDR FTSE vs. UBSFund Solutions MSCI | SPDR FTSE vs. Vanguard SP 500 | SPDR FTSE vs. iShares VII PLC | SPDR FTSE vs. iShares Core SP |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |