Correlation Between Ultimus Managers and MicroSectors Gold
Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and MicroSectors Gold 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 MicroSectors Gold 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 MicroSectors Gold Miners, you can compare the effects of market volatilities on Ultimus Managers and MicroSectors Gold 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 MicroSectors Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and MicroSectors Gold.
Diversification Opportunities for Ultimus Managers and MicroSectors Gold
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ultimus and MicroSectors is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and MicroSectors Gold Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroSectors Gold Miners 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 MicroSectors Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroSectors Gold Miners has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and MicroSectors Gold go up and down completely randomly.
Pair Corralation between Ultimus Managers and MicroSectors Gold
Given the investment horizon of 90 days Ultimus Managers Trust is expected to under-perform the MicroSectors Gold. But the etf apears to be less risky and, when comparing its historical volatility, Ultimus Managers Trust is 4.72 times less risky than MicroSectors Gold. The etf trades about -0.01 of its potential returns per unit of risk. The MicroSectors Gold Miners is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5,401 in MicroSectors Gold Miners on March 24, 2025 and sell it today you would earn a total of 2,043 from holding MicroSectors Gold Miners or generate 37.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultimus Managers Trust vs. MicroSectors Gold Miners
Performance |
| Timeline |
| Ultimus Managers Trust |
| MicroSectors Gold Miners |
Ultimus Managers and MicroSectors Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimus Managers and MicroSectors Gold
The main advantage of trading using opposite Ultimus Managers and MicroSectors Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimus Managers position performs unexpectedly, MicroSectors Gold 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 MicroSectors Gold will offset losses from the drop in MicroSectors Gold's long position.| 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 |
| MicroSectors Gold vs. First Trust Exchange Traded | MicroSectors Gold vs. Ultimus Managers Trust | MicroSectors Gold vs. Horizon Kinetics Medical | MicroSectors Gold vs. Harbor Health Care |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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