Correlation Between Ultimus Managers and First Trust
Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and First Trust 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 First Trust 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 First Trust Exchange Traded, you can compare the effects of market volatilities on Ultimus Managers and First Trust 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 First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and First Trust.
Diversification Opportunities for Ultimus Managers and First Trust
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ultimus and First is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and First Trust Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Exchange 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 First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Exchange has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and First Trust go up and down completely randomly.
Pair Corralation between Ultimus Managers and First Trust
Given the investment horizon of 90 days Ultimus Managers Trust is expected to generate 1.27 times more return on investment than First Trust. However, Ultimus Managers is 1.27 times more volatile than First Trust Exchange Traded. It trades about 0.15 of its potential returns per unit of risk. First Trust Exchange Traded is currently generating about 0.18 per unit of risk. If you would invest 2,326 in Ultimus Managers Trust on September 1, 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 | Very Strong |
| Accuracy | 89.02% |
| Values | Daily Returns |
Ultimus Managers Trust vs. First Trust Exchange Traded
Performance |
| Timeline |
| Ultimus Managers Trust |
| First Trust Exchange |
Ultimus Managers and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimus Managers and First Trust
The main advantage of trading using opposite Ultimus Managers and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimus Managers position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| 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 |
| First Trust vs. Global X SP | First Trust vs. Amplify CWP Enhanced | First Trust vs. JPMorgan Equity Premium |
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.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |