Correlation Between UBSFund Solutions and Amundi FTSE
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and Amundi 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 Amundi 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 Amundi FTSE EPRANAREIT, you can compare the effects of market volatilities on UBSFund Solutions and Amundi 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 Amundi FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and Amundi FTSE.
Diversification Opportunities for UBSFund Solutions and Amundi FTSE
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UBSFund and Amundi is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions MSCI and Amundi FTSE EPRANAREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi FTSE EPRANAREIT 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 Amundi FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi FTSE EPRANAREIT has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and Amundi FTSE go up and down completely randomly.
Pair Corralation between UBSFund Solutions and Amundi FTSE
Assuming the 90 days trading horizon UBSFund Solutions is expected to generate 7.7 times less return on investment than Amundi FTSE. But when comparing it to its historical volatility, UBSFund Solutions MSCI is 6.15 times less risky than Amundi FTSE. It trades about 0.04 of its potential returns per unit of risk. Amundi FTSE EPRANAREIT is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,636 in Amundi FTSE EPRANAREIT on September 14, 2024 and sell it today you would earn a total of 2,727 from holding Amundi FTSE EPRANAREIT or generate 166.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.85% |
| Values | Daily Returns |
UBSFund Solutions MSCI vs. Amundi FTSE EPRANAREIT
Performance |
| Timeline |
| UBSFund Solutions MSCI |
| Amundi FTSE EPRANAREIT |
UBSFund Solutions and Amundi FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and Amundi FTSE
The main advantage of trading using opposite UBSFund Solutions and Amundi FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, Amundi 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 Amundi FTSE will offset losses from the drop in Amundi FTSE'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 |
| Amundi FTSE vs. Baloise Holding AG | Amundi FTSE vs. 21Shares Polkadot ETP | Amundi FTSE vs. UBS ETF MSCI | Amundi FTSE vs. BB Biotech AG |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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