Correlation Between BetaPro SPTSX and First Trust
Can any of the company-specific risk be diversified away by investing in both BetaPro SPTSX 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 SPTSX 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 SPTSX 60 and First Trust Global, you can compare the effects of market volatilities on BetaPro SPTSX 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 SPTSX with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and First Trust.
Diversification Opportunities for BetaPro SPTSX and First Trust
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BetaPro and First is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX 60 and First Trust Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Global and BetaPro SPTSX 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 SPTSX 60 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 Global has no effect on the direction of BetaPro SPTSX i.e., BetaPro SPTSX and First Trust go up and down completely randomly.
Pair Corralation between BetaPro SPTSX and First Trust
Assuming the 90 days trading horizon BetaPro SPTSX 60 is expected to under-perform the First Trust. In addition to that, BetaPro SPTSX is 2.57 times more volatile than First Trust Global. It trades about -0.58 of its total potential returns per unit of risk. First Trust Global is currently generating about 0.17 per unit of volatility. If you would invest 1,757 in First Trust Global on September 1, 2024 and sell it today you would earn a total of 25.00 from holding First Trust Global or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
BetaPro SPTSX 60 vs. First Trust Global
Performance |
| Timeline |
| BetaPro SPTSX 60 |
| First Trust Global |
BetaPro SPTSX and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SPTSX and First Trust
The main advantage of trading using opposite BetaPro SPTSX and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SPTSX 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 SPTSX vs. BetaPro Gold Bullion | BetaPro SPTSX vs. BetaPro NASDAQ 100 2x | BetaPro SPTSX vs. BetaPro SP TSX | BetaPro SPTSX vs. BetaPro SP TSX |
| First Trust vs. First Trust Senior | First Trust vs. First Trust Value | First Trust vs. FT AlphaDEX Industrials | First Trust vs. Global X Active |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| 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 |