Correlation Between UBS ETF and ISh IBds

Can any of the company-specific risk be diversified away by investing in both UBS ETF and ISh IBds 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 ETF and ISh IBds into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UBS ETF MSCI and iSh iBds Dec27, you can compare the effects of market volatilities on UBS ETF and ISh IBds 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 ETF with a short position of ISh IBds. Check out your portfolio center. Please also check ongoing floating volatility patterns of UBS ETF and ISh IBds.

Diversification Opportunities for UBS ETF and ISh IBds

-0.02

Correlation Coefficient

UBS ETF  ISh IBds

Good diversification

The 3 months correlation between UBS and ISh is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding UBS ETF MSCI and iSh iBds Dec27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSh iBds Dec27 and UBS ETF 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 ETF MSCI are associated (or correlated) with ISh IBds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSh iBds Dec27 has no effect on the direction of UBS ETF i.e., UBS ETF and ISh IBds go up and down completely randomly.

Pair Corralation between UBS ETF and ISh IBds

Assuming the 90 days trading horizon UBS ETF is expected to generate 1.03 times less return on investment than ISh IBds. In addition to that, UBS ETF is 7.3 times more volatile than iSh iBds Dec27. It trades about 0.04 of its total potential returns per unit of risk. iSh iBds Dec27 is currently generating about 0.28 per unit of volatility. If you would invest  510.00  in iSh iBds Dec27 on May 28, 2025 and sell it today you would earn a total of  7.00  from holding iSh iBds Dec27 or generate 1.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

UBS ETF MSCI  vs.  iSh iBds Dec27

UBS ETF MSCI

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in UBS ETF MSCI are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, UBS ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

iSh iBds Dec27

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iSh iBds Dec27 are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, ISh IBds is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with UBS ETF and ISh IBds

The main advantage of trading using opposite UBS ETF and ISh IBds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UBS ETF position performs unexpectedly, ISh IBds 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 ISh IBds will offset losses from the drop in ISh IBds' long position.

The idea behind UBS ETF MSCI and iSh iBds Dec27 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.