Correlation Between ARK 21Shares and First Trust
Can any of the company-specific risk be diversified away by investing in both ARK 21Shares 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 ARK 21Shares and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARK 21Shares Active and First Trust Mid, you can compare the effects of market volatilities on ARK 21Shares 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 ARK 21Shares with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARK 21Shares and First Trust.
Diversification Opportunities for ARK 21Shares and First Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ARK and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ARK 21Shares Active and First Trust Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Mid and ARK 21Shares 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 ARK 21Shares Active 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 Mid has no effect on the direction of ARK 21Shares i.e., ARK 21Shares and First Trust go up and down completely randomly.
Pair Corralation between ARK 21Shares and First Trust
If you would invest 11,085 in First Trust Mid on May 29, 2025 and sell it today you would earn a total of 1,181 from holding First Trust Mid or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
ARK 21Shares Active vs. First Trust Mid
Performance |
| Timeline |
| ARK 21Shares Active |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| First Trust Mid |
ARK 21Shares and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARK 21Shares and First Trust
The main advantage of trading using opposite ARK 21Shares and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARK 21Shares 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.| ARK 21Shares vs. FT Vest Equity | ARK 21Shares vs. Zillow Group Class | ARK 21Shares vs. Northern Lights | ARK 21Shares vs. VanEck Vectors Moodys |
| First Trust vs. First Trust Small | First Trust vs. First Trust Large | First Trust vs. First Trust Large | First Trust vs. First Trust Large |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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