Correlation Between Tax Exempt and First Trust
Can any of the company-specific risk be diversified away by investing in both Tax Exempt 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 Tax Exempt and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tax Exempt Bond and First Trust Managed, you can compare the effects of market volatilities on Tax Exempt 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 Tax Exempt with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tax Exempt and First Trust.
Diversification Opportunities for Tax Exempt and First Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tax and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tax Exempt Bond and First Trust Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Managed and Tax Exempt 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 Tax Exempt Bond 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 Managed has no effect on the direction of Tax Exempt i.e., Tax Exempt and First Trust go up and down completely randomly.
Pair Corralation between Tax Exempt and First Trust
If you would invest (100.00) in First Trust Managed on June 1, 2025 and sell it today you would earn a total of 100.00 from holding First Trust Managed or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Tax Exempt Bond vs. First Trust Managed
Performance |
| Timeline |
| Tax Exempt Bond |
| First Trust Managed |
Risk-Adjusted Performance
Fair
Weak | Strong |
Tax Exempt and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tax Exempt and First Trust
The main advantage of trading using opposite Tax Exempt and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tax Exempt 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.| Tax Exempt vs. Semiconductor Ultrasector Profund | Tax Exempt vs. Gmo Quality Fund | Tax Exempt vs. T Rowe Price | Tax Exempt vs. Leuthold Global Fund |
| First Trust vs. Siit Equity Factor | First Trust vs. Enhanced Fixed Income | First Trust vs. Rbc China Equity | First Trust vs. Franklin Equity Income |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |