Correlation Between IShares GSCI and First Trust
Can any of the company-specific risk be diversified away by investing in both IShares GSCI 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 IShares GSCI and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares GSCI Commodity and First Trust Alternative, you can compare the effects of market volatilities on IShares GSCI 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 IShares GSCI with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares GSCI and First Trust.
Diversification Opportunities for IShares GSCI and First Trust
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and First is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding iShares GSCI Commodity and First Trust Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Alternative and IShares GSCI 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 iShares GSCI Commodity 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 Alternative has no effect on the direction of IShares GSCI i.e., IShares GSCI and First Trust go up and down completely randomly.
Pair Corralation between IShares GSCI and First Trust
Given the investment horizon of 90 days IShares GSCI is expected to generate 3.19 times less return on investment than First Trust. In addition to that, IShares GSCI is 1.02 times more volatile than First Trust Alternative. It trades about 0.04 of its total potential returns per unit of risk. First Trust Alternative is currently generating about 0.13 per unit of volatility. If you would invest 2,875 in First Trust Alternative on July 26, 2025 and sell it today you would earn a total of 182.00 from holding First Trust Alternative or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares GSCI Commodity vs. First Trust Alternative
Performance |
| Timeline |
| iShares GSCI Commodity |
| First Trust Alternative |
IShares GSCI and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares GSCI and First Trust
The main advantage of trading using opposite IShares GSCI and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares GSCI 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.| IShares GSCI vs. iShares North American | IShares GSCI vs. Innovator SP 500 | IShares GSCI vs. Innovator SP 500 | IShares GSCI vs. First Trust Exchange Traded |
| First Trust vs. VanEck India Growth | First Trust vs. ProShares Trust | First Trust vs. First Trust Dorsey | First Trust vs. Pacer Emerging Markets |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |