Correlation Between Fidelity Crypto and First Trust
Can any of the company-specific risk be diversified away by investing in both Fidelity Crypto 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 Fidelity Crypto and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Crypto Industry and First Trust SkyBridge, you can compare the effects of market volatilities on Fidelity Crypto 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 Fidelity Crypto with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Crypto and First Trust.
Diversification Opportunities for Fidelity Crypto and First Trust
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and First is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Crypto Industry and First Trust SkyBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust SkyBridge and Fidelity Crypto 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 Fidelity Crypto Industry 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 SkyBridge has no effect on the direction of Fidelity Crypto i.e., Fidelity Crypto and First Trust go up and down completely randomly.
Pair Corralation between Fidelity Crypto and First Trust
Given the investment horizon of 90 days Fidelity Crypto Industry is expected to generate 1.06 times more return on investment than First Trust. However, Fidelity Crypto is 1.06 times more volatile than First Trust SkyBridge. It trades about 0.05 of its potential returns per unit of risk. First Trust SkyBridge is currently generating about -0.12 per unit of risk. If you would invest 4,027 in Fidelity Crypto Industry on August 28, 2025 and sell it today you would earn a total of 292.00 from holding Fidelity Crypto Industry or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Fidelity Crypto Industry vs. First Trust SkyBridge
Performance |
| Timeline |
| Fidelity Crypto Industry |
| First Trust SkyBridge |
Fidelity Crypto and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Crypto and First Trust
The main advantage of trading using opposite Fidelity Crypto and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Crypto 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.| Fidelity Crypto vs. Strategy Shares | Fidelity Crypto vs. Freedom Day Dividend | Fidelity Crypto vs. Franklin Templeton ETF | Fidelity Crypto vs. iShares MSCI China |
| First Trust vs. Strategy Shares | First Trust vs. Freedom Day Dividend | First Trust vs. Franklin Templeton ETF | First Trust vs. iShares MSCI China |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |