Correlation Between Direxion Auspice and First Trust
Can any of the company-specific risk be diversified away by investing in both Direxion Auspice 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 Direxion Auspice and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Direxion Auspice Broad and First Trust Global, you can compare the effects of market volatilities on Direxion Auspice 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 Direxion Auspice with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Direxion Auspice and First Trust.
Diversification Opportunities for Direxion Auspice and First Trust
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Direxion and First is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Direxion Auspice Broad and First Trust Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Global and Direxion Auspice 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 Direxion Auspice Broad 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 Global has no effect on the direction of Direxion Auspice i.e., Direxion Auspice and First Trust go up and down completely randomly.
Pair Corralation between Direxion Auspice and First Trust
Considering the 90-day investment horizon Direxion Auspice Broad is expected to under-perform the First Trust. But the etf apears to be less risky and, when comparing its historical volatility, Direxion Auspice Broad is 1.13 times less risky than First Trust. The etf trades about -0.13 of its potential returns per unit of risk. The First Trust Global is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,543 in First Trust Global on May 29, 2025 and sell it today you would lose (11.00) from holding First Trust Global or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Direxion Auspice Broad vs. First Trust Global
Performance |
| Timeline |
| Direxion Auspice Broad |
| First Trust Global |
Direxion Auspice and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Direxion Auspice and First Trust
The main advantage of trading using opposite Direxion Auspice and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Direxion Auspice 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.| Direxion Auspice vs. GraniteShares Bloomberg Commodity | Direxion Auspice vs. abrdn Bloomberg All | Direxion Auspice vs. iShares Bloomberg Roll | Direxion Auspice vs. abrdn Bloomberg All |
| First Trust vs. iShares GSCI Commodity | First Trust vs. Invesco Optimum Yield | First Trust vs. First Trust Senior | First Trust vs. First Trust Capital |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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