Correlation Between UBS Core and UBS Fund
Can any of the company-specific risk be diversified away by investing in both UBS Core and UBS Fund 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 Core and UBS Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UBS Core MSCI and UBS Fund Solutions, you can compare the effects of market volatilities on UBS Core and UBS Fund 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 Core with a short position of UBS Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS Core and UBS Fund.
Diversification Opportunities for UBS Core and UBS Fund
Significant diversification
The 3 months correlation between UBS and UBS is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding UBS Core MSCI and UBS Fund Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Fund Solutions and UBS 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 UBS Core MSCI are associated (or correlated) with UBS Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Fund Solutions has no effect on the direction of UBS Core i.e., UBS Core and UBS Fund go up and down completely randomly.
Pair Corralation between UBS Core and UBS Fund
Assuming the 90 days trading horizon UBS Core MSCI is expected to generate 0.65 times more return on investment than UBS Fund. However, UBS Core MSCI is 1.54 times less risky than UBS Fund. It trades about 0.18 of its potential returns per unit of risk. UBS Fund Solutions is currently generating about 0.01 per unit of risk. If you would invest 1,243 in UBS Core MSCI on June 3, 2025 and sell it today you would earn a total of 115.00 from holding UBS Core MSCI or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 46.03% |
| Values | Daily Returns |
UBS Core MSCI vs. UBS Fund Solutions
Performance |
| Timeline |
| UBS Core MSCI |
| UBS Fund Solutions |
Risk-Adjusted Performance
Weak
Weak | Strong |
UBS Core and UBS Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UBS Core and UBS Fund
The main advantage of trading using opposite UBS Core and UBS Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS Core position performs unexpectedly, UBS Fund 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 Fund will offset losses from the drop in UBS Fund's long position.| UBS Core vs. UBSFund Solutions MSCI | UBS Core vs. Vanguard SP 500 | UBS Core vs. iShares VII PLC | UBS Core vs. iShares Core SP |
| UBS Fund vs. UBS ETF MSCI | UBS Fund vs. UBS ETF plc | UBS Fund vs. UBS Core MSCI | UBS Fund vs. UBS SBI Foreign |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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