Correlation Between Series Portfolios and First Trust
Can any of the company-specific risk be diversified away by investing in both Series Portfolios 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 Series Portfolios and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Series Portfolios Trust and First Trust Dow, you can compare the effects of market volatilities on Series Portfolios 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 Series Portfolios with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Series Portfolios and First Trust.
Diversification Opportunities for Series Portfolios and First Trust
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Series and First is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Series Portfolios Trust and First Trust Dow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Dow and Series Portfolios 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 Series Portfolios Trust 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 Dow has no effect on the direction of Series Portfolios i.e., Series Portfolios and First Trust go up and down completely randomly.
Pair Corralation between Series Portfolios and First Trust
Given the investment horizon of 90 days Series Portfolios Trust is expected to generate 0.07 times more return on investment than First Trust. However, Series Portfolios Trust is 13.91 times less risky than First Trust. It trades about 0.26 of its potential returns per unit of risk. First Trust Dow is currently generating about 0.01 per unit of risk. If you would invest 2,494 in Series Portfolios Trust on September 26, 2025 and sell it today you would earn a total of 63.00 from holding Series Portfolios Trust or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Series Portfolios Trust vs. First Trust Dow
Performance |
| Timeline |
| Series Portfolios Trust |
| First Trust Dow |
Series Portfolios and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Series Portfolios and First Trust
The main advantage of trading using opposite Series Portfolios and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Series Portfolios 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.| Series Portfolios vs. YieldMax Semiconductor Portfolio | Series Portfolios vs. FT Cboe Vest | Series Portfolios vs. Cambiar Aggressive Value | Series Portfolios vs. Calamos ETF Trust |
| First Trust vs. KraneShares CSI China | First Trust vs. Invesco SP 500 | First Trust vs. Capital Group Core | First Trust vs. The Real Estate |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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