Correlation Between Ultimus Managers and USCF ETF
Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and USCF ETF 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 USCF ETF 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 USCF ETF Trust, you can compare the effects of market volatilities on Ultimus Managers and USCF ETF 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 USCF ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and USCF ETF.
Diversification Opportunities for Ultimus Managers and USCF ETF
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ultimus and USCF is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and USCF ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCF ETF Trust 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 USCF ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCF ETF Trust has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and USCF ETF go up and down completely randomly.
Pair Corralation between Ultimus Managers and USCF ETF
Given the investment horizon of 90 days Ultimus Managers is expected to generate 2.51 times less return on investment than USCF ETF. But when comparing it to its historical volatility, Ultimus Managers Trust is 1.28 times less risky than USCF ETF. It trades about 0.11 of its potential returns per unit of risk. USCF ETF Trust is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,425 in USCF ETF Trust on August 17, 2025 and sell it today you would earn a total of 317.00 from holding USCF ETF Trust or generate 13.07% 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. USCF ETF Trust
Performance |
| Timeline |
| Ultimus Managers Trust |
| USCF ETF Trust |
Ultimus Managers and USCF ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimus Managers and USCF ETF
The main advantage of trading using opposite Ultimus Managers and USCF ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimus Managers position performs unexpectedly, USCF ETF 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 USCF ETF will offset losses from the drop in USCF ETF's long position.| Ultimus Managers vs. Pacer Funds Trust | Ultimus Managers vs. SPDR MSCI USA | Ultimus Managers vs. Litman Gregory Funds | Ultimus Managers vs. Proshares SP Global |
| USCF ETF vs. Invesco Exchange Traded | USCF ETF vs. Elevation Series Trust | USCF ETF vs. Ocean Park International | USCF ETF vs. Spinnaker ETF Series |
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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