Correlation Between QRAFT AI and First Trust
Can any of the company-specific risk be diversified away by investing in both QRAFT AI 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 QRAFT AI and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QRAFT AI Enhanced Large and First Trust Exchange Traded, you can compare the effects of market volatilities on QRAFT AI 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 QRAFT AI with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of QRAFT AI and First Trust.
Diversification Opportunities for QRAFT AI and First Trust
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between QRAFT and First is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding QRAFT AI Enhanced Large and First Trust Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Exchange and QRAFT AI 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 QRAFT AI Enhanced Large 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 Exchange has no effect on the direction of QRAFT AI i.e., QRAFT AI and First Trust go up and down completely randomly.
Pair Corralation between QRAFT AI and First Trust
Given the investment horizon of 90 days QRAFT AI is expected to generate 1.77 times less return on investment than First Trust. But when comparing it to its historical volatility, QRAFT AI Enhanced Large is 1.52 times less risky than First Trust. It trades about 0.33 of its potential returns per unit of risk. First Trust Exchange Traded is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 2,838 in First Trust Exchange Traded on September 1, 2024 and sell it today you would earn a total of 232.00 from holding First Trust Exchange Traded or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
QRAFT AI Enhanced Large vs. First Trust Exchange Traded
Performance |
| Timeline |
| QRAFT AI Enhanced |
| First Trust Exchange |
QRAFT AI and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QRAFT AI and First Trust
The main advantage of trading using opposite QRAFT AI and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QRAFT AI 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.| QRAFT AI vs. Vanguard Growth Index | QRAFT AI vs. iShares Russell 1000 | QRAFT AI vs. iShares SP 500 | QRAFT AI vs. iShares Core SP |
| First Trust vs. American Century Quality | First Trust vs. T Rowe Price | First Trust vs. ClearBridge Large Cap | First Trust vs. Sterling Capital Focus |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |