Correlation Between IShares VII and UBS ETF
Can any of the company-specific risk be diversified away by investing in both IShares VII and UBS 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 IShares VII and UBS ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares VII PLC and UBS ETF MSCI, you can compare the effects of market volatilities on IShares VII and UBS 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 IShares VII with a short position of UBS ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares VII and UBS ETF.
Diversification Opportunities for IShares VII and UBS ETF
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and UBS is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding iShares VII PLC and UBS ETF MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETF MSCI and IShares VII 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 iShares VII PLC are associated (or correlated) with UBS ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETF MSCI has no effect on the direction of IShares VII i.e., IShares VII and UBS ETF go up and down completely randomly.
Pair Corralation between IShares VII and UBS ETF
Assuming the 90 days trading horizon IShares VII is expected to generate 1.11 times less return on investment than UBS ETF. In addition to that, IShares VII is 1.54 times more volatile than UBS ETF MSCI. It trades about 0.06 of its total potential returns per unit of risk. UBS ETF MSCI is currently generating about 0.1 per unit of volatility. If you would invest 2,084 in UBS ETF MSCI on April 19, 2025 and sell it today you would earn a total of 27.00 from holding UBS ETF MSCI or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares VII PLC vs. UBS ETF MSCI
Performance |
| Timeline |
| iShares VII PLC |
| UBS ETF MSCI |
IShares VII and UBS ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares VII and UBS ETF
The main advantage of trading using opposite IShares VII and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares VII position performs unexpectedly, UBS 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 UBS ETF will offset losses from the drop in UBS ETF's long position.| IShares VII vs. iShares Corp Bond | IShares VII vs. iShares Emerging Asia | IShares VII vs. iShares MSCI Global | IShares VII vs. iShares VII PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |