Correlation Between Ultimus Managers and UBS ETRACS
Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and UBS ETRACS 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 UBS ETRACS 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 UBS ETRACS , you can compare the effects of market volatilities on Ultimus Managers and UBS ETRACS 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 UBS ETRACS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and UBS ETRACS.
Diversification Opportunities for Ultimus Managers and UBS ETRACS
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ultimus and UBS is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and UBS ETRACS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS ETRACS 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 UBS ETRACS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS ETRACS has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and UBS ETRACS go up and down completely randomly.
Pair Corralation between Ultimus Managers and UBS ETRACS
Given the investment horizon of 90 days Ultimus Managers Trust is expected to generate 0.22 times more return on investment than UBS ETRACS. However, Ultimus Managers Trust is 4.52 times less risky than UBS ETRACS. It trades about 0.09 of its potential returns per unit of risk. UBS ETRACS is currently generating about 0.0 per unit of risk. If you would invest 2,288 in Ultimus Managers Trust on November 27, 2024 and sell it today you would earn a total of 453.00 from holding Ultimus Managers Trust or generate 19.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 46.71% |
Values | Daily Returns |
Ultimus Managers Trust vs. UBS ETRACS
Performance |
Timeline |
Ultimus Managers Trust |
UBS ETRACS |
Ultimus Managers and UBS ETRACS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ultimus Managers and UBS ETRACS
The main advantage of trading using opposite Ultimus Managers and UBS ETRACS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimus Managers position performs unexpectedly, UBS ETRACS 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 UBS ETRACS will offset losses from the drop in UBS ETRACS's long position.Ultimus Managers vs. American Beacon Select | Ultimus Managers vs. First Trust Indxx | Ultimus Managers vs. Direxion Daily Regional | Ultimus Managers vs. Direxion Daily SP |
UBS ETRACS vs. Ultimus Managers Trust | UBS ETRACS vs. American Beacon Select | UBS ETRACS vs. First Trust Indxx | UBS ETRACS vs. Direxion Daily Regional |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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