Correlation Between Ultra Fund and Arrow Managed
Can any of the company-specific risk be diversified away by investing in both Ultra Fund and Arrow Managed 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 Ultra Fund and Arrow Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Fund Y and Arrow Managed Futures, you can compare the effects of market volatilities on Ultra Fund and Arrow Managed 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 Ultra Fund with a short position of Arrow Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Fund and Arrow Managed.
Diversification Opportunities for Ultra Fund and Arrow Managed
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ultra and Arrow is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Fund Y and Arrow Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Managed Futures and Ultra 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 Ultra Fund Y are associated (or correlated) with Arrow Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Managed Futures has no effect on the direction of Ultra Fund i.e., Ultra Fund and Arrow Managed go up and down completely randomly.
Pair Corralation between Ultra Fund and Arrow Managed
Assuming the 90 days horizon Ultra Fund Y is expected to generate 0.71 times more return on investment than Arrow Managed. However, Ultra Fund Y is 1.41 times less risky than Arrow Managed. It trades about 0.11 of its potential returns per unit of risk. Arrow Managed Futures is currently generating about 0.01 per unit of risk. If you would invest 5,885 in Ultra Fund Y on September 12, 2024 and sell it today you would earn a total of 4,815 from holding Ultra Fund Y or generate 81.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ultra Fund Y vs. Arrow Managed Futures
Performance |
| Timeline |
| Ultra Fund Y |
| Arrow Managed Futures |
Ultra Fund and Arrow Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Fund and Arrow Managed
The main advantage of trading using opposite Ultra Fund and Arrow Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Fund position performs unexpectedly, Arrow Managed 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 Arrow Managed will offset losses from the drop in Arrow Managed's long position.| Ultra Fund vs. Arrow Managed Futures | Ultra Fund vs. Leggmason Partners Institutional | Ultra Fund vs. Rbb Fund | Ultra Fund vs. Red Oak Technology |
| Arrow Managed vs. Artisan Small Cap | Arrow Managed vs. Mid Cap Growth | Arrow Managed vs. L Abbett Growth | Arrow Managed vs. Chase Growth Fund |
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
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |