Correlation Between IShares Core and UBS ETF
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 Core 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 Core SP and UBS ETF SMIM, you can compare the effects of market volatilities on IShares Core 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 Core with a short position of UBS ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and UBS ETF.
Diversification Opportunities for IShares Core and UBS ETF
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IShares and UBS is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and UBS ETF SMIM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETF SMIM and IShares Core 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 Core SP 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 SMIM has no effect on the direction of IShares Core i.e., IShares Core and UBS ETF go up and down completely randomly.
Pair Corralation between IShares Core and UBS ETF
Assuming the 90 days trading horizon iShares Core SP is expected to generate 1.3 times more return on investment than UBS ETF. However, IShares Core is 1.3 times more volatile than UBS ETF SMIM. It trades about 0.37 of its potential returns per unit of risk. UBS ETF SMIM is currently generating about 0.4 per unit of risk. If you would invest 56,030 in iShares Core SP on April 19, 2025 and sell it today you would earn a total of 11,160 from holding iShares Core SP or generate 19.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. UBS ETF SMIM
Performance |
| Timeline |
| iShares Core SP |
| UBS ETF SMIM |
IShares Core and UBS ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and UBS ETF
The main advantage of trading using opposite IShares Core and UBS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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 Core vs. iShares Corp Bond | IShares Core vs. iShares Emerging Asia | IShares Core vs. iShares MSCI Global | IShares Core 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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