Correlation Between First Trust and 012653AF8
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By analyzing existing cross correlation between First Trust Exchange Traded and ALB 565 01 JUN 52, you can compare the effects of market volatilities on First Trust and 012653AF8 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 012653AF8. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and 012653AF8.
Diversification Opportunities for First Trust and 012653AF8
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and 012653AF8 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Exchange Traded and ALB 565 01 JUN 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALB 565 01 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 Exchange Traded are associated (or correlated) with 012653AF8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALB 565 01 has no effect on the direction of First Trust i.e., First Trust and 012653AF8 go up and down completely randomly.
Pair Corralation between First Trust and 012653AF8
Given the investment horizon of 90 days First Trust Exchange Traded is expected to generate 0.18 times more return on investment than 012653AF8. However, First Trust Exchange Traded is 5.67 times less risky than 012653AF8. It trades about 0.21 of its potential returns per unit of risk. ALB 565 01 JUN 52 is currently generating about -0.03 per unit of risk. If you would invest 3,730 in First Trust Exchange Traded on November 2, 2024 and sell it today you would earn a total of 59.00 from holding First Trust Exchange Traded or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
First Trust Exchange Traded vs. ALB 565 01 JUN 52
Performance |
| Timeline |
| First Trust Exchange |
| ALB 565 01 |
First Trust and 012653AF8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and 012653AF8
The main advantage of trading using opposite First Trust and 012653AF8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, 012653AF8 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 012653AF8 will offset losses from the drop in 012653AF8's long position.| First Trust vs. First Trust Exchange | First Trust vs. First Trust Exchange Traded | First Trust vs. First Trust Exchange Traded | First Trust vs. FT Cboe Vest |
| 012653AF8 vs. AEP TEX INC | 012653AF8 vs. US BANK NATIONAL | 012653AF8 vs. Albertsons Companies | 012653AF8 vs. Copart Inc |
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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