Correlation Between Listed Funds and Ultimus Managers
Can any of the company-specific risk be diversified away by investing in both Listed Funds 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 Listed Funds and Ultimus Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Listed Funds Trust and Ultimus Managers Trust, you can compare the effects of market volatilities on Listed Funds 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 Listed Funds with a short position of Ultimus Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Listed Funds and Ultimus Managers.
Diversification Opportunities for Listed Funds and Ultimus Managers
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Listed and Ultimus is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Listed Funds 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 Listed Funds 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 Listed Funds 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 Listed Funds i.e., Listed Funds and Ultimus Managers go up and down completely randomly.
Pair Corralation between Listed Funds and Ultimus Managers
Given the investment horizon of 90 days Listed Funds Trust is expected to generate 1.4 times more return on investment than Ultimus Managers. However, Listed Funds is 1.4 times more volatile than Ultimus Managers Trust. It trades about 0.35 of its potential returns per unit of risk. Ultimus Managers Trust is currently generating about 0.31 per unit of risk. If you would invest 2,435 in Listed Funds Trust on September 4, 2024 and sell it today you would earn a total of 253.00 from holding Listed Funds Trust or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Listed Funds Trust vs. Ultimus Managers Trust
Performance |
| Timeline |
| Listed Funds Trust |
| Ultimus Managers Trust |
Listed Funds and Ultimus Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Listed Funds and Ultimus Managers
The main advantage of trading using opposite Listed Funds and Ultimus Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Listed Funds 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.| Listed Funds vs. Ultimus Managers Trust | Listed Funds vs. American Beacon Select | Listed Funds vs. Direxion Daily Regional | Listed Funds vs. Direxion Daily SP |
| Ultimus Managers vs. American Beacon Select | Ultimus Managers vs. Direxion Daily Regional | Ultimus Managers vs. Direxion Daily SP | Ultimus Managers vs. EA Series Trust |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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