Correlation Between Ultrainternational and Access Flex

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

By analyzing existing cross correlation between Ultrainternational Profund Ultrainternational and Access Flex Bear, you can compare the effects of market volatilities on Ultrainternational and Access Flex 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 Ultrainternational with a short position of Access Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultrainternational and Access Flex.

Diversification Opportunities for Ultrainternational and Access Flex

-0.69

Correlation Coefficient

Ultrainternational  Access Flex

Excellent diversification

The 3 months correlation between Ultrainternational and Access is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ultrainternational Profund Ult and Access Flex Bear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Flex Bear and Ultrainternational 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 Ultrainternational Profund Ultrainternational are associated (or correlated) with Access Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Flex Bear has no effect on the direction of Ultrainternational i.e., Ultrainternational and Access Flex go up and down completely randomly.

Pair Corralation between Ultrainternational and Access Flex

Assuming the 90 days horizon Ultrainternational Profund Ultrainternational is expected to under-perform the Access Flex. In addition to that, Ultrainternational is 6.59 times more volatile than Access Flex Bear. It trades about -0.04 of its total potential returns per unit of risk. Access Flex Bear is currently generating about -0.07 per unit of volatility. If you would invest  3,008  in Access Flex Bear on September 24, 2024 and sell it today you would lose (91.00) from holding Access Flex Bear or give up 3.03% of portfolio value over 90 days.

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

Ultrainternational Profund Ult  vs.  Access Flex Bear

Ultrainternational

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ultrainternational Profund Ultrainternational has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Access Flex Bear

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Access Flex Bear are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Access Flex is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ultrainternational and Access Flex

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

The idea behind Ultrainternational Profund Ultrainternational and Access Flex Bear 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 Global Correlations module to find global opportunities by holding instruments from different markets.