Correlation Between AIM ETF and Ultimus Managers
Can any of the company-specific risk be diversified away by investing in both AIM ETF 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 AIM ETF and Ultimus Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIM ETF Products and Ultimus Managers Trust, you can compare the effects of market volatilities on AIM ETF 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 AIM ETF with a short position of Ultimus Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIM ETF and Ultimus Managers.
Diversification Opportunities for AIM ETF and Ultimus Managers
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AIM and Ultimus is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AIM ETF Products 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 AIM ETF 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 AIM ETF Products 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 AIM ETF i.e., AIM ETF and Ultimus Managers go up and down completely randomly.
Pair Corralation between AIM ETF and Ultimus Managers
Given the investment horizon of 90 days AIM ETF is expected to generate 1.42 times less return on investment than Ultimus Managers. But when comparing it to its historical volatility, AIM ETF Products is 2.0 times less risky than Ultimus Managers. It trades about 0.37 of its potential returns per unit of risk. Ultimus Managers Trust is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,792 in Ultimus Managers Trust on September 5, 2024 and sell it today you would earn a total of 97.00 from holding Ultimus Managers Trust or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIM ETF Products vs. Ultimus Managers Trust
Performance |
| Timeline |
| AIM ETF Products |
| Ultimus Managers Trust |
AIM ETF and Ultimus Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIM ETF and Ultimus Managers
The main advantage of trading using opposite AIM ETF and Ultimus Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIM ETF 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.| AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products |
| Ultimus Managers vs. FT Cboe Vest | Ultimus Managers vs. AIM ETF Products | Ultimus Managers vs. Series Portfolios 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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