Correlation Between BetaPro Gold and First Trust
Can any of the company-specific risk be diversified away by investing in both BetaPro Gold and First 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 BetaPro Gold and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro Gold Bullion and First Trust Canadian, you can compare the effects of market volatilities on BetaPro Gold and First 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 BetaPro Gold with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro Gold and First Trust.
Diversification Opportunities for BetaPro Gold and First Trust
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BetaPro and First is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro Gold Bullion and First Trust Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Canadian and BetaPro Gold 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 BetaPro Gold Bullion are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Canadian has no effect on the direction of BetaPro Gold i.e., BetaPro Gold and First Trust go up and down completely randomly.
Pair Corralation between BetaPro Gold and First Trust
Assuming the 90 days trading horizon BetaPro Gold Bullion is expected to generate 5.75 times more return on investment than First Trust. However, BetaPro Gold is 5.75 times more volatile than First Trust Canadian. It trades about 0.14 of its potential returns per unit of risk. First Trust Canadian is currently generating about 0.1 per unit of risk. If you would invest 3,680 in BetaPro Gold Bullion on December 5, 2025 and sell it today you would earn a total of 1,388 from holding BetaPro Gold Bullion or generate 37.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.36% |
| Values | Daily Returns |
BetaPro Gold Bullion vs. First Trust Canadian
Performance |
| Timeline |
| BetaPro Gold Bullion |
| First Trust Canadian |
BetaPro Gold and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro Gold and First Trust
The main advantage of trading using opposite BetaPro Gold and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro Gold position performs unexpectedly, First 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 First Trust will offset losses from the drop in First Trust's long position.| BetaPro Gold vs. BetaPro Silver 2x | BetaPro Gold vs. BetaPro Canadian Gold | BetaPro Gold vs. BetaPro SPTSX Capped | BetaPro Gold vs. BetaPro SPTSX 60 |
| First Trust vs. TD Q Low | First Trust vs. TD Q International | First Trust vs. iShares SP Small Cap | First Trust vs. Harvest Travel Leisure |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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