Correlation Between UBSFund Solutions and IShares NASDAQ
Can any of the company-specific risk be diversified away by investing in both UBSFund Solutions and IShares NASDAQ 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 NASDAQ 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 NASDAQ 100, you can compare the effects of market volatilities on UBSFund Solutions and IShares NASDAQ 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 NASDAQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBSFund Solutions and IShares NASDAQ.
Diversification Opportunities for UBSFund Solutions and IShares NASDAQ
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UBSFund and IShares is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding UBSFund Solutions MSCI and iShares NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares NASDAQ 100 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 NASDAQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares NASDAQ 100 has no effect on the direction of UBSFund Solutions i.e., UBSFund Solutions and IShares NASDAQ go up and down completely randomly.
Pair Corralation between UBSFund Solutions and IShares NASDAQ
Assuming the 90 days trading horizon UBSFund Solutions is expected to generate 2.75 times less return on investment than IShares NASDAQ. In addition to that, UBSFund Solutions is 1.1 times more volatile than iShares NASDAQ 100. It trades about 0.04 of its total potential returns per unit of risk. iShares NASDAQ 100 is currently generating about 0.13 per unit of volatility. If you would invest 64,030 in iShares NASDAQ 100 on September 28, 2024 and sell it today you would earn a total of 58,530 from holding iShares NASDAQ 100 or generate 91.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 97.18% |
Values | Daily Returns |
UBSFund Solutions MSCI vs. iShares NASDAQ 100
Performance |
Timeline |
UBSFund Solutions MSCI |
iShares NASDAQ 100 |
UBSFund Solutions and IShares NASDAQ Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBSFund Solutions and IShares NASDAQ
The main advantage of trading using opposite UBSFund Solutions and IShares NASDAQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBSFund Solutions position performs unexpectedly, IShares NASDAQ 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 NASDAQ will offset losses from the drop in IShares NASDAQ's long position.UBSFund Solutions vs. Vanguard SP 500 | UBSFund Solutions vs. iShares VII PLC | UBSFund Solutions vs. iShares Core SP | UBSFund Solutions vs. Lyxor Japan UCITS |
IShares NASDAQ vs. UBSFund Solutions MSCI | IShares NASDAQ vs. Vanguard SP 500 | IShares NASDAQ vs. iShares VII PLC | IShares NASDAQ 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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