Correlation Between First Trust and SPDR Bridgewater
Can any of the company-specific risk be diversified away by investing in both First Trust and SPDR Bridgewater 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 SPDR Bridgewater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Dorsey and SPDR Bridgewater All, you can compare the effects of market volatilities on First Trust and SPDR Bridgewater 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 SPDR Bridgewater. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and SPDR Bridgewater.
Diversification Opportunities for First Trust and SPDR Bridgewater
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and SPDR is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Dorsey and SPDR Bridgewater All in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bridgewater All 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 Dorsey are associated (or correlated) with SPDR Bridgewater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bridgewater All has no effect on the direction of First Trust i.e., First Trust and SPDR Bridgewater go up and down completely randomly.
Pair Corralation between First Trust and SPDR Bridgewater
Considering the 90-day investment horizon First Trust is expected to generate 6.18 times less return on investment than SPDR Bridgewater. But when comparing it to its historical volatility, First Trust Dorsey is 1.64 times less risky than SPDR Bridgewater. It trades about 0.07 of its potential returns per unit of risk. SPDR Bridgewater All is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,595 in SPDR Bridgewater All on July 13, 2025 and sell it today you would earn a total of 207.00 from holding SPDR Bridgewater All or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
First Trust Dorsey vs. SPDR Bridgewater All
Performance |
| Timeline |
| First Trust Dorsey |
| SPDR Bridgewater All |
First Trust and SPDR Bridgewater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and SPDR Bridgewater
The main advantage of trading using opposite First Trust and SPDR Bridgewater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, SPDR Bridgewater 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 SPDR Bridgewater will offset losses from the drop in SPDR Bridgewater's long position.| First Trust vs. First Trust Dorsey | First Trust vs. First Trust Mid | First Trust vs. First Trust Small | First Trust vs. First Trust Dorsey |
| SPDR Bridgewater vs. Simplify Managed Futures | SPDR Bridgewater vs. iShares Gold Trust | SPDR Bridgewater vs. VistaShares Target 15 | SPDR Bridgewater vs. SSGA Active Trust |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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