Correlation Between First Trust and OneAscent Core
Can any of the company-specific risk be diversified away by investing in both First Trust and OneAscent Core 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 OneAscent Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust SkyBridge and OneAscent Core Plus, you can compare the effects of market volatilities on First Trust and OneAscent Core 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 OneAscent Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and OneAscent Core.
Diversification Opportunities for First Trust and OneAscent Core
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and OneAscent is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding First Trust SkyBridge and OneAscent Core Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Core Plus 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 SkyBridge are associated (or correlated) with OneAscent Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Core Plus has no effect on the direction of First Trust i.e., First Trust and OneAscent Core go up and down completely randomly.
Pair Corralation between First Trust and OneAscent Core
Given the investment horizon of 90 days First Trust SkyBridge is expected to generate 14.73 times more return on investment than OneAscent Core. However, First Trust is 14.73 times more volatile than OneAscent Core Plus. It trades about 0.11 of its potential returns per unit of risk. OneAscent Core Plus is currently generating about 0.09 per unit of risk. If you would invest 533.00 in First Trust SkyBridge on September 3, 2024 and sell it today you would earn a total of 1,511 from holding First Trust SkyBridge or generate 283.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust SkyBridge vs. OneAscent Core Plus
Performance |
| Timeline |
| First Trust SkyBridge |
| OneAscent Core Plus |
First Trust and OneAscent Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and OneAscent Core
The main advantage of trading using opposite First Trust and OneAscent Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, OneAscent Core 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 OneAscent Core will offset losses from the drop in OneAscent Core's long position.| First Trust vs. VanEck Digital Transformation | First Trust vs. Bitwise Crypto Industry | First Trust vs. Global X Blockchain | First Trust vs. First Trust Indxx |
| OneAscent Core vs. iShares Core 1 5 | OneAscent Core vs. iShares Core International | OneAscent Core vs. iShares Treasury Bond | OneAscent Core vs. iShares 1 5 Year |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Transaction History View history of all your transactions and understand their impact on performance |