Correlation Between Ultimus Managers and Global X
Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and Global X 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 Global X 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 Global X MLP, you can compare the effects of market volatilities on Ultimus Managers and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and Global X.
Diversification Opportunities for Ultimus Managers and Global X
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Ultimus and Global is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and Global X MLP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X MLP 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X MLP has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and Global X go up and down completely randomly.
Pair Corralation between Ultimus Managers and Global X
Given the investment horizon of 90 days Ultimus Managers is expected to generate 1.71 times less return on investment than Global X. But when comparing it to its historical volatility, Ultimus Managers Trust is 1.27 times less risky than Global X. It trades about 0.31 of its potential returns per unit of risk. Global X MLP is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 5,634 in Global X MLP on September 4, 2024 and sell it today you would earn a total of 659.00 from holding Global X MLP or generate 11.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultimus Managers Trust vs. Global X MLP
Performance |
| Timeline |
| Ultimus Managers Trust |
| Global X MLP |
Ultimus Managers and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimus Managers and Global X
The main advantage of trading using opposite Ultimus Managers and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimus Managers position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Ultimus Managers vs. American Beacon Select | Ultimus Managers vs. Direxion Daily Regional | Ultimus Managers vs. Direxion Daily SP | Ultimus Managers vs. EA Series Trust |
| Global X vs. Global X MLP | Global X vs. Alerian Energy Infrastructure | Global X vs. First Trust North | Global X vs. Tortoise North American |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |