Correlation Between STF Tactical and Ultimus Managers
Can any of the company-specific risk be diversified away by investing in both STF Tactical 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 STF Tactical and Ultimus Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STF Tactical Growth and Ultimus Managers Trust, you can compare the effects of market volatilities on STF Tactical 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 STF Tactical with a short position of Ultimus Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of STF Tactical and Ultimus Managers.
Diversification Opportunities for STF Tactical and Ultimus Managers
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between STF and Ultimus is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding STF Tactical Growth 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 STF Tactical 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 STF Tactical Growth 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 STF Tactical i.e., STF Tactical and Ultimus Managers go up and down completely randomly.
Pair Corralation between STF Tactical and Ultimus Managers
Considering the 90-day investment horizon STF Tactical Growth is expected to generate 1.72 times more return on investment than Ultimus Managers. However, STF Tactical is 1.72 times more volatile than Ultimus Managers Trust. It trades about 0.14 of its potential returns per unit of risk. Ultimus Managers Trust is currently generating about 0.21 per unit of risk. If you would invest 3,137 in STF Tactical Growth on September 5, 2024 and sell it today you would earn a total of 408.00 from holding STF Tactical Growth or generate 13.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
STF Tactical Growth vs. Ultimus Managers Trust
Performance |
| Timeline |
| STF Tactical Growth |
| Ultimus Managers Trust |
STF Tactical and Ultimus Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STF Tactical and Ultimus Managers
The main advantage of trading using opposite STF Tactical and Ultimus Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STF Tactical 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.| STF Tactical vs. Aquagold International | STF Tactical vs. Morningstar Unconstrained Allocation | STF Tactical vs. High Yield Municipal Fund | STF Tactical vs. Thrivent High Yield |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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