Correlation Between Ultra Fund and Macquarie Global

Can any of the company-specific risk be diversified away by investing in both Ultra Fund and Macquarie Global 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 Ultra Fund and Macquarie Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ultra Fund R6 and Macquarie Global Infrastructure, you can compare the effects of market volatilities on Ultra Fund and Macquarie Global 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 Ultra Fund with a short position of Macquarie Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Fund and Macquarie Global.

Diversification Opportunities for Ultra Fund and Macquarie Global

-0.78

Correlation Coefficient

Ultra Fund  Macquarie Global

Pay attention - limited upside

The 3 months correlation between Ultra and Macquarie is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Fund R6 and Macquarie Global Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Global Inf and Ultra Fund 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 Ultra Fund R6 are associated (or correlated) with Macquarie Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Global Inf has no effect on the direction of Ultra Fund i.e., Ultra Fund and Macquarie Global go up and down completely randomly.

Pair Corralation between Ultra Fund and Macquarie Global

If you would invest  9,361  in Ultra Fund R6 on September 23, 2024 and sell it today you would earn a total of  871.00  from holding Ultra Fund R6 or generate 9.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.79%
Values	Daily Returns

Ultra Fund R6  vs.  Macquarie Global Infrastructur

Ultra Fund R6

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ultra Fund R6 are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Ultra Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Macquarie Global Inf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Macquarie Global Infrastructure has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable technical and fundamental indicators, Macquarie Global is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ultra Fund and Macquarie Global

The main advantage of trading using opposite Ultra Fund and Macquarie Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Fund position performs unexpectedly, Macquarie Global 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 Macquarie Global will offset losses from the drop in Macquarie Global's long position.

The idea behind Ultra Fund R6 and Macquarie Global Infrastructure pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..