Correlation Between UBSFund Solutions and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and IShares 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 IShares 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 iShares MSCI Global, you can compare the effects of market volatilities on UBSFund Solutions and IShares 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and IShares MSCI.
Diversification Opportunities for UBSFund Solutions and IShares MSCI
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UBSFund and IShares is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions MSCI and iShares MSCI Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Global 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Global has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and IShares MSCI go up and down completely randomly.
Pair Corralation between UBSFund Solutions and IShares MSCI
Assuming the 90 days trading horizon UBSFund Solutions MSCI is expected to generate 0.56 times more return on investment than IShares MSCI. However, UBSFund Solutions MSCI is 1.79 times less risky than IShares MSCI. It trades about 0.15 of its potential returns per unit of risk. iShares MSCI Global is currently generating about -0.14 per unit of risk. If you would invest 4,652 in UBSFund Solutions MSCI on August 29, 2024 and sell it today you would earn a total of 132.00 from holding UBSFund Solutions MSCI or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
UBSFund Solutions MSCI vs. iShares MSCI Global
Performance |
| Timeline |
| UBSFund Solutions MSCI |
| iShares MSCI Global |
UBSFund Solutions and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBSFund Solutions and IShares MSCI
The main advantage of trading using opposite UBSFund Solutions and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, IShares 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 IShares MSCI will offset losses from the drop in IShares MSCI'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 MSCI vs. UBSFund Solutions MSCI | IShares MSCI vs. Vanguard SP 500 | IShares MSCI vs. iShares VII PLC | IShares 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| 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 | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |