Correlation Between NYSE Composite and Ultimus Managers
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Ultimus Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Ultimus Managers Trust, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Ultimus Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Ultimus Managers.
Diversification Opportunities for NYSE Composite and Ultimus Managers
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Ultimus is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Ultimus Managers go up and down completely randomly.
Pair Corralation between NYSE Composite and Ultimus Managers
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.15 times less return on investment than Ultimus Managers. But when comparing it to its historical volatility, NYSE Composite is 1.3 times less risky than Ultimus Managers. It trades about 0.24 of its potential returns per unit of risk. Ultimus Managers Trust is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 2,586 in Ultimus Managers Trust on August 28, 2024 and sell it today you would earn a total of 195.00 from holding Ultimus Managers Trust or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Ultimus Managers Trust
Performance |
| Timeline |
NYSE Composite and Ultimus Managers Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Ultimus Managers Trust
Pair trading matchups for Ultimus Managers
Pair Trading with NYSE Composite and Ultimus Managers
The main advantage of trading using opposite NYSE Composite and Ultimus Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Hooker Furniture | NYSE Composite vs. Hudson Pacific Properties | NYSE Composite vs. Canlan Ice Sports | NYSE Composite vs. Boston Properties |
| 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 |
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.
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