Correlation Between Ultrainternational and Ultrashort Japan

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

Diversification Opportunities for Ultrainternational and Ultrashort Japan

-0.87

Correlation Coefficient

Ultrainternational  Ultrashort Japan

Pay attention - limited upside

The 3 months correlation between Ultrainternational and Ultrashort is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ultrainternational Profund Ult and Ultrashort Japan Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultrashort Japan Profund 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 Ultrashort Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultrashort Japan Profund has no effect on the direction of Ultrainternational i.e., Ultrainternational and Ultrashort Japan go up and down completely randomly.

Pair Corralation between Ultrainternational and Ultrashort Japan

Assuming the 90 days horizon Ultrainternational Profund Ultrainternational is expected to generate 0.44 times more return on investment than Ultrashort Japan. However, Ultrainternational Profund Ultrainternational is 2.26 times less risky than Ultrashort Japan. It trades about 0.06 of its potential returns per unit of risk. Ultrashort Japan Profund is currently generating about -0.18 per unit of risk. If you would invest  2,054  in Ultrainternational Profund Ultrainternational on July 21, 2025 and sell it today you would earn a total of  61.00  from holding Ultrainternational Profund Ultrainternational or generate 2.97% return on investment over 90 days.

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

Ultrainternational Profund Ult  vs.  Ultrashort Japan Profund

Ultrainternational

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Ultrainternational Profund Ultrainternational are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Ultrainternational may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Ultrashort Japan Profund

Risk-Adjusted Performance

Weakest

Over the last 90 days Ultrashort Japan Profund 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 November 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Ultrainternational and Ultrashort Japan

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

The idea behind Ultrainternational Profund Ultrainternational and Ultrashort Japan Profund 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.