Correlation Between FIRST TRUST and FIRST TRUST

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Can any of the company-specific risk be diversified away by investing in both FIRST TRUST 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 FIRST TRUST and FIRST TRUST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST TRUST GLOBAL and FIRST TRUST GLOBAL, you can compare the effects of market volatilities on FIRST TRUST 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 FIRST TRUST with a short position of FIRST TRUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST TRUST and FIRST TRUST.

Diversification Opportunities for FIRST TRUST and FIRST TRUST

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between FIRST and FIRST is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FIRST TRUST GLOBAL 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 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 GLOBAL 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 FIRST TRUST i.e., FIRST TRUST and FIRST TRUST go up and down completely randomly.

Pair Corralation between FIRST TRUST and FIRST TRUST

If you would invest  246,000  in FIRST TRUST GLOBAL on September 28, 2024 and sell it today you would earn a total of  2,425  from holding FIRST TRUST GLOBAL or generate 0.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

FIRST TRUST GLOBAL  vs.  FIRST TRUST GLOBAL

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 02468
JavaScript chart by amCharts 3.21.15NOVB MINR
       Timeline  
FIRST TRUST GLOBAL 

Risk-Adjusted Performance

25 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in FIRST TRUST GLOBAL are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, FIRST TRUST may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15NovDecDec2,3002,3502,4002,450
FIRST TRUST GLOBAL 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days FIRST TRUST GLOBAL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.
JavaScript chart by amCharts 3.21.15NovDecDec1,5501,6001,6501,7001,7501,800

FIRST TRUST and FIRST TRUST Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.2-0.85-0.5-0.150.05450.370.721.071.421.77 0.51.01.52.0
JavaScript chart by amCharts 3.21.15NOVB MINR
       Returns  

Pair Trading with FIRST TRUST and FIRST TRUST

The main advantage of trading using opposite FIRST TRUST and FIRST TRUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST TRUST 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.
The idea behind FIRST TRUST GLOBAL and FIRST TRUST GLOBAL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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