Correlation Between UBS Fund and Amundi Index
Can any of the company-specific risk be diversified away by investing in both UBS Fund and Amundi Index 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 Index 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 Index Solutions, you can compare the effects of market volatilities on UBS Fund and Amundi Index 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 Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Fund and Amundi Index.
Diversification Opportunities for UBS Fund and Amundi Index
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UBS and Amundi is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding UBS Fund Solutions and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of UBS Fund i.e., UBS Fund and Amundi Index go up and down completely randomly.
Pair Corralation between UBS Fund and Amundi Index
Assuming the 90 days trading horizon UBS Fund is expected to generate 1.05 times less return on investment than Amundi Index. In addition to that, UBS Fund is 2.34 times more volatile than Amundi Index Solutions. It trades about 0.09 of its total potential returns per unit of risk. Amundi Index Solutions is currently generating about 0.21 per unit of volatility. If you would invest 11,375 in Amundi Index Solutions on September 12, 2024 and sell it today you would earn a total of 680.00 from holding Amundi Index Solutions or generate 5.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
UBS Fund Solutions vs. Amundi Index Solutions
Performance |
Timeline |
UBS Fund Solutions |
Amundi Index Solutions |
UBS Fund and Amundi Index Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UBS Fund and Amundi Index
The main advantage of trading using opposite UBS Fund and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Fund position performs unexpectedly, Amundi Index 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 Index will offset losses from the drop in Amundi Index'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 Index vs. Amundi MSCI Europe | Amundi Index vs. Amundi SP 500 | Amundi Index vs. Amundi Euro Stoxx | Amundi Index vs. Amundi Index Solutions |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |