Correlation Between First Trust and Ultimus Managers
Can any of the company-specific risk be diversified away by investing in both First Trust 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 First Trust and Ultimus Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Nasdaq and Ultimus Managers Trust, you can compare the effects of market volatilities on First Trust 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 First Trust with a short position of Ultimus Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Ultimus Managers.
Diversification Opportunities for First Trust and Ultimus Managers
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Ultimus is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Nasdaq 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 First Trust 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 First Trust Nasdaq 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 First Trust i.e., First Trust and Ultimus Managers go up and down completely randomly.
Pair Corralation between First Trust and Ultimus Managers
Given the investment horizon of 90 days First Trust Nasdaq is expected to under-perform the Ultimus Managers. In addition to that, First Trust is 1.15 times more volatile than Ultimus Managers Trust. It trades about -0.06 of its total potential returns per unit of risk. Ultimus Managers Trust is currently generating about 0.03 per unit of volatility. If you would invest 2,584 in Ultimus Managers Trust on September 5, 2025 and sell it today you would earn a total of 34.00 from holding Ultimus Managers Trust or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Nasdaq vs. Ultimus Managers Trust
Performance |
| Timeline |
| First Trust Nasdaq |
| Ultimus Managers Trust |
First Trust and Ultimus Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Ultimus Managers
The main advantage of trading using opposite First Trust and Ultimus Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust 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.| First Trust vs. Ultimus Managers Trust | First Trust vs. American Beacon Select | First Trust vs. Direxion Daily SP | First Trust vs. EA Series Trust |
| Ultimus Managers vs. American Beacon Select | Ultimus Managers vs. Direxion Daily SP | Ultimus Managers vs. EA Series Trust | Ultimus Managers vs. Global X MLP |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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