Correlation Between Ultimus Managers and Pgim Jennison
Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and Pgim Jennison 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 Ultimus Managers and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultimus Managers Trust and Pgim Jennison Technology, you can compare the effects of market volatilities on Ultimus Managers and Pgim Jennison 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 Ultimus Managers with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and Pgim Jennison.
Diversification Opportunities for Ultimus Managers and Pgim Jennison
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ultimus and Pgim is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and Pgim Jennison Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Technology and Ultimus Managers 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 Ultimus Managers Trust are associated (or correlated) with Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Technology has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and Pgim Jennison go up and down completely randomly.
Pair Corralation between Ultimus Managers and Pgim Jennison
Assuming the 90 days horizon Ultimus Managers Trust is expected to generate 0.84 times more return on investment than Pgim Jennison. However, Ultimus Managers Trust is 1.18 times less risky than Pgim Jennison. It trades about 0.46 of its potential returns per unit of risk. Pgim Jennison Technology is currently generating about 0.21 per unit of risk. If you would invest 2,000 in Ultimus Managers Trust on September 2, 2024 and sell it today you would earn a total of 210.00 from holding Ultimus Managers Trust or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultimus Managers Trust vs. Pgim Jennison Technology
Performance |
| Timeline |
| Ultimus Managers Trust |
| Pgim Jennison Technology |
Ultimus Managers and Pgim Jennison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimus Managers and Pgim Jennison
The main advantage of trading using opposite Ultimus Managers and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimus Managers position performs unexpectedly, Pgim Jennison 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 Pgim Jennison will offset losses from the drop in Pgim Jennison's long position.| Ultimus Managers vs. Pgim Jennison Technology | Ultimus Managers vs. Columbia Global Technology | Ultimus Managers vs. Technology Ultrasector Profund | Ultimus Managers vs. Science Technology Fund |
| Pgim Jennison vs. Veea Inc | Pgim Jennison vs. VHAI | Pgim Jennison vs. VivoPower International PLC | Pgim Jennison vs. WEBTOON Entertainment Common |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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