Correlation Between First Trust and BKIS
Can any of the company-specific risk be diversified away by investing in both First Trust and BKIS 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 BKIS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust S Network and BKIS, you can compare the effects of market volatilities on First Trust and BKIS 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 BKIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and BKIS.
Diversification Opportunities for First Trust and BKIS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and BKIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Trust S Network and BKIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKIS 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 S Network are associated (or correlated) with BKIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKIS has no effect on the direction of First Trust i.e., First Trust and BKIS go up and down completely randomly.
Pair Corralation between First Trust and BKIS
If you would invest 2,515 in First Trust S Network on November 28, 2024 and sell it today you would earn a total of 637.00 from holding First Trust S Network or generate 25.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
First Trust S Network vs. BKIS
Performance |
| Timeline |
| First Trust S |
| BKIS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
First Trust and BKIS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and BKIS
The main advantage of trading using opposite First Trust and BKIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, BKIS 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 BKIS will offset losses from the drop in BKIS's long position.| First Trust vs. First Trust Exchange Traded | First Trust vs. First Trust S Network | First Trust vs. First Trust Expanded | First Trust vs. First Trust Indxx |
| BKIS vs. iShares Equity Factor | BKIS vs. iShares MSCI Emerging | BKIS vs. iShares MSCI USA | BKIS vs. iShares MSCI Intl |
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 Stocks Directory module to find actively traded stocks across global markets.
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