Correlation Between First Trust and Roundhill Ether
Can any of the company-specific risk be diversified away by investing in both First Trust and Roundhill Ether 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 Roundhill Ether 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 Roundhill Ether Covered, you can compare the effects of market volatilities on First Trust and Roundhill Ether 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 Roundhill Ether. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Roundhill Ether.
Diversification Opportunities for First Trust and Roundhill Ether
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Roundhill is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding First Trust SkyBridge and Roundhill Ether Covered in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Ether Covered 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 Roundhill Ether. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Ether Covered has no effect on the direction of First Trust i.e., First Trust and Roundhill Ether go up and down completely randomly.
Pair Corralation between First Trust and Roundhill Ether
Given the investment horizon of 90 days First Trust SkyBridge is expected to generate 2.51 times more return on investment than Roundhill Ether. However, First Trust is 2.51 times more volatile than Roundhill Ether Covered. It trades about 0.24 of its potential returns per unit of risk. Roundhill Ether Covered is currently generating about 0.21 per unit of risk. If you would invest 1,454 in First Trust SkyBridge on August 26, 2024 and sell it today you would earn a total of 536.00 from holding First Trust SkyBridge or generate 36.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust SkyBridge vs. Roundhill Ether Covered
Performance |
| Timeline |
| First Trust SkyBridge |
| Roundhill Ether Covered |
First Trust and Roundhill Ether Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Roundhill Ether
The main advantage of trading using opposite First Trust and Roundhill Ether positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Roundhill Ether 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 Roundhill Ether will offset losses from the drop in Roundhill Ether'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 |
| Roundhill Ether vs. Grayscale Bitcoin Trust | Roundhill Ether vs. Siren Nasdaq NexGen | Roundhill Ether vs. Grayscale Bitcoin Mini | Roundhill Ether vs. First Trust SkyBridge |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |