Correlation Between Saba Closed and First Trust
Can any of the company-specific risk be diversified away by investing in both Saba Closed 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 Saba Closed and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saba Closed End Funds and First Trust Nasdaq, you can compare the effects of market volatilities on Saba Closed 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 Saba Closed with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saba Closed and First Trust.
Diversification Opportunities for Saba Closed and First Trust
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Saba and First is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Saba Closed End Funds 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 Saba Closed 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 Saba Closed End Funds 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 Saba Closed i.e., Saba Closed and First Trust go up and down completely randomly.
Pair Corralation between Saba Closed and First Trust
Given the investment horizon of 90 days Saba Closed is expected to generate 6.38 times less return on investment than First Trust. But when comparing it to its historical volatility, Saba Closed End Funds is 3.94 times less risky than First Trust. It trades about 0.1 of its potential returns per unit of risk. First Trust Nasdaq is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 11,632 in First Trust Nasdaq on October 11, 2025 and sell it today you would earn a total of 2,653 from holding First Trust Nasdaq or generate 22.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saba Closed End Funds vs. First Trust Nasdaq
Performance |
| Timeline |
| Saba Closed End |
| First Trust Nasdaq |
Saba Closed and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saba Closed and First Trust
The main advantage of trading using opposite Saba Closed and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saba Closed 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.| Saba Closed vs. Northern Lights | Saba Closed vs. TCW ETF Trust | Saba Closed vs. Ea Bridgeway Blue | Saba Closed vs. iShares MSCI Netherlands |
| First Trust vs. First Trust Nasdaq | First Trust vs. The Advisors Inner | First Trust vs. Northern Lights | First Trust vs. Congress Large Cap |
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 CEOs Directory module to screen CEOs from public companies around the world.
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