Correlation Between DoubleLine ETF and First Trust
Can any of the company-specific risk be diversified away by investing in both DoubleLine ETF 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 DoubleLine ETF and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DoubleLine ETF Trust and First Trust Nasdaq, you can compare the effects of market volatilities on DoubleLine ETF 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 DoubleLine ETF with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of DoubleLine ETF and First Trust.
Diversification Opportunities for DoubleLine ETF and First Trust
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between DoubleLine and First is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding DoubleLine ETF Trust 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 DoubleLine ETF 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 DoubleLine ETF 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 Nasdaq has no effect on the direction of DoubleLine ETF i.e., DoubleLine ETF and First Trust go up and down completely randomly.
Pair Corralation between DoubleLine ETF and First Trust
Given the investment horizon of 90 days DoubleLine ETF Trust is expected to generate 0.86 times more return on investment than First Trust. However, DoubleLine ETF Trust is 1.16 times less risky than First Trust. It trades about -0.05 of its potential returns per unit of risk. First Trust Nasdaq is currently generating about -0.12 per unit of risk. If you would invest 3,087 in DoubleLine ETF Trust on August 23, 2025 and sell it today you would lose (77.00) from holding DoubleLine ETF Trust or give up 2.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DoubleLine ETF Trust vs. First Trust Nasdaq
Performance |
| Timeline |
| DoubleLine ETF Trust |
| First Trust Nasdaq |
DoubleLine ETF and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DoubleLine ETF and First Trust
The main advantage of trading using opposite DoubleLine ETF and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DoubleLine ETF 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.| DoubleLine ETF vs. First Trust Bloomberg | DoubleLine ETF vs. OVS SpA | DoubleLine ETF vs. Managed Portfolio Series | DoubleLine ETF vs. ProShares Ultra Telecommunications |
| First Trust vs. First Trust Nasdaq | First Trust vs. First Trust Bloomberg | First Trust vs. Cambria Cannabis ETF | First Trust vs. DoubleLine ETF Trust |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |