Correlation Between Ultimus Managers and Neuberger Berman

Can any of the company-specific risk be diversified away by investing in both Ultimus Managers and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman ETF, you can compare the effects of market volatilities on Ultimus Managers and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimus Managers and Neuberger Berman.

Diversification Opportunities for Ultimus Managers and Neuberger Berman

-0.78

Correlation Coefficient

Ultimus Managers  Neuberger Berman

Pay attention - limited upside

The 3 months correlation between Ultimus and Neuberger is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ultimus Managers Trust and Neuberger Berman ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman ETF 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman ETF has no effect on the direction of Ultimus Managers i.e., Ultimus Managers and Neuberger Berman go up and down completely randomly.

Pair Corralation between Ultimus Managers and Neuberger Berman

Given the investment horizon of 90 days Ultimus Managers Trust is expected to generate 1.05 times more return on investment than Neuberger Berman. However, Ultimus Managers is 1.05 times more volatile than Neuberger Berman ETF. It trades about 0.18 of its potential returns per unit of risk. Neuberger Berman ETF is currently generating about -0.13 per unit of risk. If you would invest  2,506  in Ultimus Managers Trust on September 12, 2024 and sell it today you would earn a total of  239.00  from holding Ultimus Managers Trust or generate 9.54% return on investment over 90 days.

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

Ultimus Managers Trust  vs.  Neuberger Berman ETF

Ultimus Managers Trust

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ultimus Managers Trust are ranked lower than 13 (%) 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 January 2025.

Neuberger Berman ETF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Neuberger Berman ETF has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Etf's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.

Pair Trading with Ultimus Managers and Neuberger Berman

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

The idea behind Ultimus Managers Trust and Neuberger Berman ETF 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.