Correlation Between Amundi Index and UBSFund Solutions
Can any of the company-specific risk be diversified away by investing in both Amundi Index and UBSFund Solutions 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 Amundi Index and UBSFund Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi Index Solutions and UBSFund Solutions MSCI, you can compare the effects of market volatilities on Amundi Index and UBSFund Solutions 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 Amundi Index with a short position of UBSFund Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi Index and UBSFund Solutions.
Diversification Opportunities for Amundi Index and UBSFund Solutions
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amundi and UBSFund is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amundi Index Solutions and UBSFund Solutions MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBSFund Solutions MSCI and Amundi Index 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 Amundi Index Solutions are associated (or correlated) with UBSFund Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBSFund Solutions MSCI has no effect on the direction of Amundi Index i.e., Amundi Index and UBSFund Solutions go up and down completely randomly.
Pair Corralation between Amundi Index and UBSFund Solutions
Assuming the 90 days trading horizon Amundi Index Solutions is expected to under-perform the UBSFund Solutions. But the etf apears to be less risky and, when comparing its historical volatility, Amundi Index Solutions is 1.13 times less risky than UBSFund Solutions. The etf trades about 0.0 of its potential returns per unit of risk. The UBSFund Solutions MSCI is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,947 in UBSFund Solutions MSCI on September 2, 2024 and sell it today you would lose (111.00) from holding UBSFund Solutions MSCI or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.09% |
| Values | Daily Returns |
Amundi Index Solutions vs. UBSFund Solutions MSCI
Performance |
| Timeline |
| Amundi Index Solutions |
| UBSFund Solutions MSCI |
Amundi Index and UBSFund Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi Index and UBSFund Solutions
The main advantage of trading using opposite Amundi Index and UBSFund Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi Index position performs unexpectedly, UBSFund Solutions 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 UBSFund Solutions will offset losses from the drop in UBSFund Solutions' long position.| Amundi Index vs. iShares Core SP | Amundi Index vs. iShares Core MSCI | Amundi Index vs. Lyxor UCITS Stoxx |
| UBSFund Solutions vs. iShares Core SP | UBSFund Solutions vs. iShares Core MSCI | UBSFund Solutions vs. Lyxor UCITS Stoxx |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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