Correlation Between Flkypx and First Trust
Can any of the company-specific risk be diversified away by investing in both Flkypx 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 Flkypx and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flkypx and First Trust Short, you can compare the effects of market volatilities on Flkypx 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 Flkypx with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flkypx and First Trust.
Diversification Opportunities for Flkypx and First Trust
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Flkypx and First is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Flkypx and First Trust Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Short and Flkypx 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 Flkypx 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 Short has no effect on the direction of Flkypx i.e., Flkypx and First Trust go up and down completely randomly.
Pair Corralation between Flkypx and First Trust
Assuming the 90 days trading horizon Flkypx is expected to generate 6.14 times more return on investment than First Trust. However, Flkypx is 6.14 times more volatile than First Trust Short. It trades about 0.31 of its potential returns per unit of risk. First Trust Short is currently generating about 0.28 per unit of risk. If you would invest 973.00 in Flkypx on June 1, 2025 and sell it today you would earn a total of 143.00 from holding Flkypx or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flkypx vs. First Trust Short
Performance |
| Timeline |
| Flkypx |
| First Trust Short |
Flkypx and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flkypx and First Trust
The main advantage of trading using opposite Flkypx and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flkypx 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.| Flkypx vs. Virtus Seix Government | Flkypx vs. Wells Fargo Government | Flkypx vs. Wesmark Government Bond | Flkypx vs. Dunham Porategovernment Bond |
| First Trust vs. First Trust Managed | First Trust vs. Franklin Templeton Multi Asset | First Trust vs. First Trust Multi Strategy | First Trust vs. First Trust Short |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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