Correlation Between First Trust and Brompton Flaherty
Can any of the company-specific risk be diversified away by investing in both First Trust and Brompton Flaherty 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 First Trust and Brompton Flaherty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Canadian and Brompton Flaherty Crumrine, you can compare the effects of market volatilities on First Trust and Brompton Flaherty 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 First Trust with a short position of Brompton Flaherty. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Brompton Flaherty.
Diversification Opportunities for First Trust and Brompton Flaherty
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Brompton is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Canadian and Brompton Flaherty Crumrine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brompton Flaherty and First Trust 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 First Trust Canadian are associated (or correlated) with Brompton Flaherty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brompton Flaherty has no effect on the direction of First Trust i.e., First Trust and Brompton Flaherty go up and down completely randomly.
Pair Corralation between First Trust and Brompton Flaherty
Assuming the 90 days trading horizon First Trust Canadian is expected to generate 2.13 times more return on investment than Brompton Flaherty. However, First Trust is 2.13 times more volatile than Brompton Flaherty Crumrine. It trades about 0.07 of its potential returns per unit of risk. Brompton Flaherty Crumrine is currently generating about 0.04 per unit of risk. If you would invest 6,937 in First Trust Canadian on November 2, 2025 and sell it today you would earn a total of 233.00 from holding First Trust Canadian or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Canadian vs. Brompton Flaherty Crumrine
Performance |
| Timeline |
| First Trust Canadian |
| Brompton Flaherty |
First Trust and Brompton Flaherty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Brompton Flaherty
The main advantage of trading using opposite First Trust and Brompton Flaherty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Brompton Flaherty 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 Brompton Flaherty will offset losses from the drop in Brompton Flaherty's long position.| First Trust vs. iShares ESG Equity | First Trust vs. iShares MSCI Min | First Trust vs. Invesco RAFI Canadian | First Trust vs. Desjardins RI Developed |
| Brompton Flaherty vs. First Trust Canadian | Brompton Flaherty vs. Global X Canadian | Brompton Flaherty vs. Evolve Cyber Security | Brompton Flaherty vs. iShares MSCI Min |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |