Correlation Between Ultramid Cap and Investec Emerging

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

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

Diversification Opportunities for Ultramid Cap and Investec Emerging

-0.01

Correlation Coefficient

Ultramid Cap  Investec Emerging

Good diversification

The 3 months correlation between Ultramid and Investec is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ultramid Cap Profund Ultramid and Investec Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Emerging Markets and Ultramid Cap 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 Ultramid Cap Profund Ultramid Cap are associated (or correlated) with Investec Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Emerging Markets has no effect on the direction of Ultramid Cap i.e., Ultramid Cap and Investec Emerging go up and down completely randomly.

Pair Corralation between Ultramid Cap and Investec Emerging

Assuming the 90 days horizon Ultramid Cap is expected to generate 1.3 times less return on investment than Investec Emerging. In addition to that, Ultramid Cap is 2.22 times more volatile than Investec Emerging Markets. It trades about 0.04 of its total potential returns per unit of risk. Investec Emerging Markets is currently generating about 0.11 per unit of volatility. If you would invest  1,416  in Investec Emerging Markets on September 12, 2025 and sell it today you would earn a total of  83.00  from holding Investec Emerging Markets or generate 5.86% return on investment over 90 days.

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

Ultramid Cap Profund Ultramid   vs.  Investec Emerging Markets

Ultramid Cap Profund

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ultramid Cap Profund Ultramid Cap are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Ultramid Cap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Investec Emerging Markets

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Investec Emerging Markets are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Investec Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ultramid Cap and Investec Emerging

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

The idea behind Ultramid Cap Profund Ultramid Cap and Investec 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.