Correlation Between Unified Series and OneAscent Emerging

Can any of the company-specific risk be diversified away by investing in both Unified Series and OneAscent Emerging 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 Unified Series and OneAscent Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Unified Series Trust and OneAscent Emerging Markets, you can compare the effects of market volatilities on Unified Series and OneAscent Emerging 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 Unified Series with a short position of OneAscent Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unified Series and OneAscent Emerging.

Diversification Opportunities for Unified Series and OneAscent Emerging

0.7

Correlation Coefficient

Unified Series  OneAscent Emerging

Poor diversification

The 3 months correlation between Unified and OneAscent is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Unified Series Trust and OneAscent Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Emerging and Unified Series 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 Unified Series Trust are associated (or correlated) with OneAscent Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Emerging has no effect on the direction of Unified Series i.e., Unified Series and OneAscent Emerging go up and down completely randomly.

Pair Corralation between Unified Series and OneAscent Emerging

Given the investment horizon of 90 days Unified Series Trust is expected to under-perform the OneAscent Emerging. But the etf apears to be less risky and, when comparing its historical volatility, Unified Series Trust is 1.06 times less risky than OneAscent Emerging. The etf trades about -0.07 of its potential returns per unit of risk. The OneAscent Emerging Markets is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  2,933  in OneAscent Emerging Markets on December 30, 2024 and sell it today you would lose (46.00) from holding OneAscent Emerging Markets or give up 1.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Unified Series Trust  vs.  OneAscent Emerging Markets

Unified Series Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Unified Series Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Unified Series is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

OneAscent Emerging

Risk-Adjusted Performance

Very Weak

Over the last 90 days OneAscent Emerging Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, OneAscent Emerging is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Unified Series and OneAscent Emerging

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

The idea behind Unified Series Trust and OneAscent Emerging Markets 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.