Correlation Between First Industrial and Tidal Trust
Can any of the company-specific risk be diversified away by investing in both First Industrial and Tidal Trust 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 Industrial and Tidal Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Industrial Realty and Tidal Trust II, you can compare the effects of market volatilities on First Industrial and Tidal Trust 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 Industrial with a short position of Tidal Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Industrial and Tidal Trust.
Diversification Opportunities for First Industrial and Tidal Trust
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Tidal is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty and Tidal Trust II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tidal Trust II and First Industrial 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 Industrial Realty are associated (or correlated) with Tidal Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tidal Trust II has no effect on the direction of First Industrial i.e., First Industrial and Tidal Trust go up and down completely randomly.
Pair Corralation between First Industrial and Tidal Trust
Allowing for the 90-day total investment horizon First Industrial Realty is expected to generate 1.17 times more return on investment than Tidal Trust. However, First Industrial is 1.17 times more volatile than Tidal Trust II. It trades about 0.08 of its potential returns per unit of risk. Tidal Trust II is currently generating about 0.04 per unit of risk. If you would invest 5,357 in First Industrial Realty on August 28, 2024 and sell it today you would earn a total of 90.00 from holding First Industrial Realty or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Industrial Realty vs. Tidal Trust II
Performance |
| Timeline |
| First Industrial Realty |
| Tidal Trust II |
First Industrial and Tidal Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Industrial and Tidal Trust
The main advantage of trading using opposite First Industrial and Tidal Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Industrial position performs unexpectedly, Tidal Trust 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 Tidal Trust will offset losses from the drop in Tidal Trust's long position.| First Industrial vs. LXP Industrial Trust | First Industrial vs. Plymouth Industrial REIT | First Industrial vs. Global Self Storage | First Industrial vs. Terreno Realty |
| Tidal Trust vs. First Trust Exchange Traded | Tidal Trust vs. Ultimus Managers Trust | Tidal Trust vs. Horizon Kinetics Medical | Tidal Trust vs. Harbor Health Care |
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.
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