Correlation Between First Trust and Global X
Can any of the company-specific risk be diversified away by investing in both First Trust and Global X 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 Global X 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 Global X Seasonal, you can compare the effects of market volatilities on First Trust and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Global X.
Diversification Opportunities for First Trust and Global X
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Global is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Canadian and Global X Seasonal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Seasonal 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Seasonal has no effect on the direction of First Trust i.e., First Trust and Global X go up and down completely randomly.
Pair Corralation between First Trust and Global X
Assuming the 90 days trading horizon First Trust is expected to generate 1.1 times less return on investment than Global X. But when comparing it to its historical volatility, First Trust Canadian is 1.07 times less risky than Global X. It trades about 0.15 of its potential returns per unit of risk. Global X Seasonal is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,223 in Global X Seasonal on October 24, 2025 and sell it today you would earn a total of 242.00 from holding Global X Seasonal or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Canadian vs. Global X Seasonal
Performance |
| Timeline |
| First Trust Canadian |
| Global X Seasonal |
First Trust and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Global X
The main advantage of trading using opposite First Trust and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X'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 |
| Global X vs. iShares ESG Balanced | Global X vs. CI Gold Giants | Global X vs. iShares ESG Equity | Global X vs. Evolve SP 500 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |