Correlation Between EA Series and Ultimus Managers
Can any of the company-specific risk be diversified away by investing in both EA Series and Ultimus Managers 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 EA Series and Ultimus Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and Ultimus Managers Trust, you can compare the effects of market volatilities on EA Series and Ultimus Managers 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 EA Series with a short position of Ultimus Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and Ultimus Managers.
Diversification Opportunities for EA Series and Ultimus Managers
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DRLL and Ultimus is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and Ultimus Managers Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultimus Managers Trust and EA Series 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 EA Series Trust are associated (or correlated) with Ultimus Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultimus Managers Trust has no effect on the direction of EA Series i.e., EA Series and Ultimus Managers go up and down completely randomly.
Pair Corralation between EA Series and Ultimus Managers
Given the investment horizon of 90 days EA Series Trust is expected to generate 1.23 times more return on investment than Ultimus Managers. However, EA Series is 1.23 times more volatile than Ultimus Managers Trust. It trades about 0.33 of its potential returns per unit of risk. Ultimus Managers Trust is currently generating about 0.39 per unit of risk. If you would invest 2,857 in EA Series Trust on August 24, 2024 and sell it today you would earn a total of 236.00 from holding EA Series Trust or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Series Trust vs. Ultimus Managers Trust
Performance |
| Timeline |
| EA Series Trust |
| Ultimus Managers Trust |
EA Series and Ultimus Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and Ultimus Managers
The main advantage of trading using opposite EA Series and Ultimus Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, Ultimus Managers 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 Ultimus Managers will offset losses from the drop in Ultimus Managers' long position.| EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. Rumble Inc | EA Series vs. EA Series Trust |
| Ultimus Managers vs. First Trust Exchange Traded | Ultimus Managers vs. Horizon Kinetics Medical | Ultimus Managers vs. Harbor Health Care | Ultimus Managers vs. American Beacon Select |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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