Correlation Between First Trust and Procure Space
Can any of the company-specific risk be diversified away by investing in both First Trust and Procure Space 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 Procure Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Nasdaq and Procure Space ETF, you can compare the effects of market volatilities on First Trust and Procure Space 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 Procure Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Procure Space.
Diversification Opportunities for First Trust and Procure Space
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between First and Procure is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Nasdaq and Procure Space ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procure Space ETF 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 Nasdaq are associated (or correlated) with Procure Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procure Space ETF has no effect on the direction of First Trust i.e., First Trust and Procure Space go up and down completely randomly.
Pair Corralation between First Trust and Procure Space
Given the investment horizon of 90 days First Trust is expected to generate 86.05 times less return on investment than Procure Space. But when comparing it to its historical volatility, First Trust Nasdaq is 1.38 times less risky than Procure Space. It trades about 0.0 of its potential returns per unit of risk. Procure Space ETF is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,595 in Procure Space ETF on June 11, 2025 and sell it today you would earn a total of 887.00 from holding Procure Space ETF or generate 34.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Nasdaq vs. Procure Space ETF
Performance |
| Timeline |
| First Trust Nasdaq |
| Procure Space ETF |
First Trust and Procure Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Procure Space
The main advantage of trading using opposite First Trust and Procure Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Procure Space 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 Procure Space will offset losses from the drop in Procure Space's long position.| First Trust vs. First Trust Nasdaq | First Trust vs. First Trust Nasdaq | First Trust vs. First Trust Nasdaq | First Trust vs. First Trust Nasdaq |
| Procure Space vs. ARK Space Exploration | Procure Space vs. Iridium Communications | Procure Space vs. The 3D Printing | Procure Space vs. SPDR SP Kensho |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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