Correlation Between UBSFund Solutions and HSBC MSCI
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and HSBC MSCI 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 HSBC MSCI 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 HSBC MSCI Europe, you can compare the effects of market volatilities on UBSFund Solutions and HSBC MSCI 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 HSBC MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and HSBC MSCI.
Diversification Opportunities for UBSFund Solutions and HSBC MSCI
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between UBSFund and HSBC is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions MSCI and HSBC MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC MSCI Europe 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 HSBC MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC MSCI Europe has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and HSBC MSCI go up and down completely randomly.
Pair Corralation between UBSFund Solutions and HSBC MSCI
Assuming the 90 days trading horizon UBSFund Solutions MSCI is expected to under-perform the HSBC MSCI. In addition to that, UBSFund Solutions is 1.84 times more volatile than HSBC MSCI Europe. It trades about -0.01 of its total potential returns per unit of risk. HSBC MSCI Europe is currently generating about 0.0 per unit of volatility. If you would invest 2,680 in HSBC MSCI Europe on September 3, 2024 and sell it today you would lose (27.00) from holding HSBC MSCI Europe or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.99% |
| Values | Daily Returns |
UBSFund Solutions MSCI vs. HSBC MSCI Europe
Performance |
| Timeline |
| UBSFund Solutions MSCI |
| HSBC MSCI Europe |
UBSFund Solutions and HSBC MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and HSBC MSCI
The main advantage of trading using opposite UBSFund Solutions and HSBC MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, HSBC MSCI 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 HSBC MSCI will offset losses from the drop in HSBC MSCI'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 |
| HSBC MSCI vs. UBSFund Solutions MSCI | HSBC MSCI vs. Vanguard SP 500 | HSBC MSCI vs. iShares VII PLC | HSBC MSCI 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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