Correlation Between First Trust and Global X
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By analyzing existing cross correlation between First Trust Nasdaq and Global X Bitcoin, you can compare the effects of market volatilities on First Trust and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Global X.
Diversification Opportunities for First Trust and Global X
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Global is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Nasdaq and Global X Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Bitcoin 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 Nasdaq are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Bitcoin has no effect on the direction of First Trust i.e., First Trust and Global X go up and down completely randomly.
Pair Corralation between First Trust and Global X
Assuming the 90 days trading horizon First Trust Nasdaq is expected to under-perform the Global X. But the etf apears to be less risky and, when comparing its historical volatility, First Trust Nasdaq is 1.55 times less risky than Global X. The etf trades about -0.04 of its potential returns per unit of risk. The Global X Bitcoin is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,994 in Global X Bitcoin on November 2, 2024 and sell it today you would earn a total of 7,671 from holding Global X Bitcoin or generate 384.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
First Trust Nasdaq vs. Global X Bitcoin
Performance |
| Timeline |
| First Trust Nasdaq |
| Global X Bitcoin |
First Trust and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Global X
The main advantage of trading using opposite First Trust and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| First Trust vs. First Trust Global | First Trust vs. First Trust Alerian | First Trust vs. First Trust Value | First Trust vs. First Trust Nasdaq |
| Global X vs. Global X China | Global X vs. Global X Aave | Global X vs. Global X NASDAQ | Global X vs. Global X Cloud |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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