Correlation Between First Trust and Etn Fr
Can any of the company-specific risk be diversified away by investing in both First Trust and Etn Fr 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 Etn Fr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust RBA and Etn Fr Colruyt, you can compare the effects of market volatilities on First Trust and Etn Fr 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 Etn Fr. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Etn Fr.
Diversification Opportunities for First Trust and Etn Fr
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Etn is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding First Trust RBA and Etn Fr Colruyt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etn Fr Colruyt 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 RBA are associated (or correlated) with Etn Fr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etn Fr Colruyt has no effect on the direction of First Trust i.e., First Trust and Etn Fr go up and down completely randomly.
Pair Corralation between First Trust and Etn Fr
Given the investment horizon of 90 days First Trust is expected to generate 3.35 times less return on investment than Etn Fr. But when comparing it to its historical volatility, First Trust RBA is 3.46 times less risky than Etn Fr. It trades about 0.09 of its potential returns per unit of risk. Etn Fr Colruyt is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,200 in Etn Fr Colruyt on September 1, 2024 and sell it today you would earn a total of 2,270 from holding Etn Fr Colruyt or generate 103.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 66.89% |
| Values | Daily Returns |
First Trust RBA vs. Etn Fr Colruyt
Performance |
| Timeline |
| First Trust RBA |
| Etn Fr Colruyt |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Trust and Etn Fr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Etn Fr
The main advantage of trading using opposite First Trust and Etn Fr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Etn Fr 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 Etn Fr will offset losses from the drop in Etn Fr's long position.| First Trust vs. First Trust Dorsey | First Trust vs. First Trust Dorsey | First Trust vs. First Trust Dorsey | First Trust vs. First Trust Equity |
| Etn Fr vs. FT Vest Equity | Etn Fr vs. Zillow Group Class | Etn Fr vs. Northern Lights | Etn Fr vs. VanEck Vectors Moodys |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| 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 | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |