Correlation Between UBS Fund and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both UBS Fund and Amundi ETF 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 UBS Fund and Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Fund Solutions and Amundi ETF MSCI, you can compare the effects of market volatilities on UBS Fund and Amundi ETF 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 UBS Fund with a short position of Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and Amundi ETF.
Diversification Opportunities for UBS Fund and Amundi ETF
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between UBS and Amundi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and Amundi ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF MSCI and UBS Fund 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 UBS Fund Solutions are associated (or correlated) with Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF MSCI has no effect on the direction of UBS Fund i.e., UBS Fund and Amundi ETF go up and down completely randomly.
Pair Corralation between UBS Fund and Amundi ETF
Assuming the 90 days trading horizon UBS Fund Solutions is expected to generate 1.66 times more return on investment than Amundi ETF. However, UBS Fund is 1.66 times more volatile than Amundi ETF MSCI. It trades about 0.03 of its potential returns per unit of risk. Amundi ETF MSCI is currently generating about -0.05 per unit of risk. If you would invest 5,002 in UBS Fund Solutions on September 3, 2024 and sell it today you would earn a total of 209.00 from holding UBS Fund Solutions or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UBS Fund Solutions vs. Amundi ETF MSCI
Performance |
| Timeline |
| UBS Fund Solutions |
| Amundi ETF MSCI |
UBS Fund and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Fund and Amundi ETF
The main advantage of trading using opposite UBS Fund and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, Amundi ETF 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 ETF will offset losses from the drop in Amundi ETF's long position.| UBS Fund vs. UBS Barclays Liquid | UBS Fund vs. UBS ETF Public | UBS Fund vs. UBS ETF SICAV | UBS Fund vs. UBS Fund Solutions |
| Amundi ETF vs. Amundi MSCI Europe | Amundi ETF vs. Amundi SP 500 | Amundi ETF vs. Amundi Index Solutions | Amundi ETF vs. Amundi Euro 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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