Correlation Between UBSFund Solutions and IShares SP
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and IShares SP 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 IShares SP 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 iShares SP 500, you can compare the effects of market volatilities on UBSFund Solutions and IShares SP 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 IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and IShares SP.
Diversification Opportunities for UBSFund Solutions and IShares SP
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UBSFund and IShares is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions MSCI and iShares SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP 500 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 IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP 500 has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and IShares SP go up and down completely randomly.
Pair Corralation between UBSFund Solutions and IShares SP
Assuming the 90 days trading horizon UBSFund Solutions MSCI is expected to generate 1.63 times more return on investment than IShares SP. However, UBSFund Solutions is 1.63 times more volatile than iShares SP 500. It trades about 0.04 of its potential returns per unit of risk. iShares SP 500 is currently generating about 0.06 per unit of risk. If you would invest 4,044 in UBSFund Solutions MSCI on December 5, 2024 and sell it today you would earn a total of 899.00 from holding UBSFund Solutions MSCI or generate 22.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.94% |
| Values | Daily Returns |
UBSFund Solutions MSCI vs. iShares SP 500
Performance |
| Timeline |
| UBSFund Solutions MSCI |
| iShares SP 500 |
UBSFund Solutions and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and IShares SP
The main advantage of trading using opposite UBSFund Solutions and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, IShares SP 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 IShares SP will offset losses from the drop in IShares SP's long position.| UBSFund Solutions vs. UBSFund Solutions MSCI | ||
| UBSFund Solutions vs. UBSFund Solutions Bloomberg | ||
| UBSFund Solutions vs. UBSFund Solutions MSCI | ||
| UBSFund Solutions vs. UBSFund Solutions Bloomberg |
| IShares SP vs. iShares Corp Bond | ||
| IShares SP vs. iShares Emerging Asia | ||
| IShares SP vs. iShares MSCI Global | ||
| IShares SP vs. iShares VII PLC |
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..
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings 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 | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |