Correlation Between First Trust and Clockwise Capital
Can any of the company-specific risk be diversified away by investing in both First Trust and Clockwise Capital 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 Clockwise Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust RiverFront and Clockwise Capital, you can compare the effects of market volatilities on First Trust and Clockwise Capital 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 Clockwise Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Clockwise Capital.
Diversification Opportunities for First Trust and Clockwise Capital
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Clockwise is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding First Trust RiverFront and Clockwise Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clockwise Capital 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 RiverFront are associated (or correlated) with Clockwise Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clockwise Capital has no effect on the direction of First Trust i.e., First Trust and Clockwise Capital go up and down completely randomly.
Pair Corralation between First Trust and Clockwise Capital
If you would invest 7,636 in First Trust RiverFront on November 6, 2025 and sell it today you would earn a total of 983.00 from holding First Trust RiverFront or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.67% |
| Values | Daily Returns |
First Trust RiverFront vs. Clockwise Capital
Performance |
| Timeline |
| First Trust RiverFront |
| Clockwise Capital |
Risk-Adjusted Performance
Weakest
Weak | Strong |
First Trust and Clockwise Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Clockwise Capital
The main advantage of trading using opposite First Trust and Clockwise Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Clockwise Capital 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 Clockwise Capital will offset losses from the drop in Clockwise Capital's long position.| First Trust vs. Avantis International Small | First Trust vs. Goldman Sachs MarketBeta | First Trust vs. WisdomTree Emerging Markets | First Trust vs. WisdomTree Emerging Markets |
| Clockwise Capital vs. FT Vest Equity | Clockwise Capital vs. Zillow Group Class | Clockwise Capital vs. Northern Lights | Clockwise Capital vs. Blackrock ETF Trust |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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