Correlation Between First Trust and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both First Trust and STKD Bitcoin 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 STKD Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Indxx and STKD Bitcoin Gold, you can compare the effects of market volatilities on First Trust and STKD Bitcoin 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 STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and STKD Bitcoin.
Diversification Opportunities for First Trust and STKD Bitcoin
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between First and STKD is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Indxx and STKD Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STKD Bitcoin Gold 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 Indxx are associated (or correlated) with STKD Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STKD Bitcoin Gold has no effect on the direction of First Trust i.e., First Trust and STKD Bitcoin go up and down completely randomly.
Pair Corralation between First Trust and STKD Bitcoin
Given the investment horizon of 90 days First Trust Indxx is expected to generate 0.15 times more return on investment than STKD Bitcoin. However, First Trust Indxx is 6.59 times less risky than STKD Bitcoin. It trades about 0.02 of its potential returns per unit of risk. STKD Bitcoin Gold is currently generating about -0.07 per unit of risk. If you would invest 4,650 in First Trust Indxx on September 23, 2024 and sell it today you would earn a total of 11.00 from holding First Trust Indxx or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Indxx vs. STKD Bitcoin Gold
Performance |
| Timeline |
| First Trust Indxx |
| STKD Bitcoin Gold |
First Trust and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and STKD Bitcoin
The main advantage of trading using opposite First Trust and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, STKD Bitcoin 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 STKD Bitcoin will offset losses from the drop in STKD Bitcoin's long position.| First Trust vs. Grayscale Bitcoin Trust | First Trust vs. Amplify Transformational Data | First Trust vs. Siren Nasdaq NexGen | First Trust vs. Bitwise Crypto Industry |
| STKD Bitcoin vs. Grayscale Bitcoin Trust | STKD Bitcoin vs. Amplify Transformational Data | STKD Bitcoin vs. Siren Nasdaq NexGen | STKD Bitcoin vs. First Trust Indxx |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |