Correlation Between Ultimus Managers and Themes Airlines
Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and Themes Airlines 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 Themes Airlines 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 Themes Airlines ETF, you can compare the effects of market volatilities on Ultimus Managers and Themes Airlines 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 Themes Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and Themes Airlines.
Diversification Opportunities for Ultimus Managers and Themes Airlines
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ultimus and Themes is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and Themes Airlines ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Airlines ETF 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 Themes Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Airlines ETF has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and Themes Airlines go up and down completely randomly.
Pair Corralation between Ultimus Managers and Themes Airlines
Given the investment horizon of 90 days Ultimus Managers Trust is expected to generate 0.64 times more return on investment than Themes Airlines. However, Ultimus Managers Trust is 1.55 times less risky than Themes Airlines. It trades about 0.15 of its potential returns per unit of risk. Themes Airlines ETF is currently generating about 0.06 per unit of risk. If you would invest 2,326 in Ultimus Managers Trust on September 3, 2024 and sell it today you would earn a total of 495.00 from holding Ultimus Managers Trust or generate 21.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 66.8% |
| Values | Daily Returns |
Ultimus Managers Trust vs. Themes Airlines ETF
Performance |
| Timeline |
| Ultimus Managers Trust |
| Themes Airlines ETF |
Ultimus Managers and Themes Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimus Managers and Themes Airlines
The main advantage of trading using opposite Ultimus Managers and Themes Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimus Managers position performs unexpectedly, Themes Airlines 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 Themes Airlines will offset losses from the drop in Themes Airlines' long position.The idea behind Ultimus Managers Trust and Themes Airlines ETF 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.| Themes Airlines vs. First Trust Indxx | Themes Airlines vs. Direxion Daily Industrials | Themes Airlines vs. NATO | Themes Airlines vs. FlexShares STOXX Global |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance |