Correlation Between Tidal ETF and First Trust
Can any of the company-specific risk be diversified away by investing in both Tidal ETF 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 Tidal ETF and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal ETF Services and First Trust NASDAQ, you can compare the effects of market volatilities on Tidal ETF 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 Tidal ETF with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal ETF and First Trust.
Diversification Opportunities for Tidal ETF and First Trust
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tidal and First is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tidal ETF Services and First Trust NASDAQ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust NASDAQ and Tidal ETF 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 Tidal ETF Services 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 NASDAQ has no effect on the direction of Tidal ETF i.e., Tidal ETF and First Trust go up and down completely randomly.
Pair Corralation between Tidal ETF and First Trust
If you would invest 2,195 in Tidal ETF Services on September 26, 2025 and sell it today you would earn a total of 0.00 from holding Tidal ETF Services or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Tidal ETF Services vs. First Trust NASDAQ
Performance |
| Timeline |
| Tidal ETF Services |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| First Trust NASDAQ |
Tidal ETF and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal ETF and First Trust
The main advantage of trading using opposite Tidal ETF and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal ETF 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.| Tidal ETF vs. ClearShares OCIO ETF | Tidal ETF vs. Collaborative Investment Series | Tidal ETF vs. Northern Lights | Tidal ETF vs. Collaborative Investment Series |
| First Trust vs. Invesco SP 500 | First Trust vs. Schwab Emerging Markets | First Trust vs. Vanguard Tax Managed Balanced | First Trust vs. ProShares SP 500 |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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