Correlation Between First Trust and RGLB
Can any of the company-specific risk be diversified away by investing in both First Trust and RGLB 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 First Trust and RGLB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust and RGLB, you can compare the effects of market volatilities on First Trust and RGLB 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 First Trust with a short position of RGLB. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and RGLB.
Diversification Opportunities for First Trust and RGLB
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and RGLB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Trust and RGLB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RGLB and First Trust 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 First Trust are associated (or correlated) with RGLB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RGLB has no effect on the direction of First Trust i.e., First Trust and RGLB go up and down completely randomly.
Pair Corralation between First Trust and RGLB
If you would invest (100.00) in RGLB on October 19, 2025 and sell it today you would earn a total of 100.00 from holding RGLB or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust vs. RGLB
Performance |
| Timeline |
| First Trust |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| RGLB |
Risk-Adjusted Performance
Weakest
Weak | Strong |
First Trust and RGLB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and RGLB
The main advantage of trading using opposite First Trust and RGLB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, RGLB 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 RGLB will offset losses from the drop in RGLB's long position.The idea behind First Trust and RGLB 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.| RGLB vs. VanEck Natural Resources | RGLB vs. iShares Aerospace Defense | RGLB vs. Fidelity Real Estate | RGLB vs. Invesco Emerging Markets |
Check out your portfolio center.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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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