Correlation Between Ultimus Managers and Tortoise Global

Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and Tortoise 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 Ultimus Managers and Tortoise Global 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 Tortoise Global Water, you can compare the effects of market volatilities on Ultimus Managers and Tortoise 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 Ultimus Managers with a short position of Tortoise Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and Tortoise Global.

Diversification Opportunities for Ultimus Managers and Tortoise Global

-0.19

Correlation Coefficient

Ultimus Managers  Tortoise Global

Good diversification

The 3 months correlation between Ultimus and Tortoise is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and Tortoise Global Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tortoise Global Water 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 Tortoise Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tortoise Global Water has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and Tortoise Global go up and down completely randomly.

Pair Corralation between Ultimus Managers and Tortoise Global

Given the investment horizon of 90 days Ultimus Managers Trust is expected to generate 0.97 times more return on investment than Tortoise Global. However, Ultimus Managers Trust is 1.03 times less risky than Tortoise Global. It trades about 0.13 of its potential returns per unit of risk. Tortoise Global Water is currently generating about 0.05 per unit of risk. If you would invest  2,307  in Ultimus Managers Trust on October 24, 2024 and sell it today you would earn a total of  552.00  from holding Ultimus Managers Trust or generate 23.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	40.08%
Values	Daily Returns

Ultimus Managers Trust  vs.  Tortoise Global Water

Ultimus Managers Trust

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ultimus Managers Trust are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Ultimus Managers may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Tortoise Global Water

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tortoise Global Water has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Tortoise Global is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Ultimus Managers and Tortoise Global

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

The idea behind Ultimus Managers Trust and Tortoise Global Water 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.