Correlation Between Blockchain Technologies and First Trust

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Is diversification improved when Blockchain Technologies ETF and First Trust Canadian appear in the same portfolio? Correlation context here helps quantify the diversifiable risk between Blockchain Technologies ETF and First Trust Canadian.
Cross-correlation between Blockchain Technologies ETF and First Trust Canadian helps estimate portfolio overlap before combining both positions. You can also test a long Blockchain Technologies and short First Trust structure to evaluate relative-value behavior. Review volatility patterns in Blockchain Technologies and First Trust. Go to your portfolio center

Diversification Opportunities for Blockchain Technologies and First Trust

-0.02
  Correlation Coefficient

Good diversification

The 3 months correlation between Blockchain and First is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Blockchain Technologies ETF and First Trust Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Canadian and Blockchain Technologies 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 Blockchain Technologies ETF 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 Canadian has no effect on the direction of Blockchain Technologies i.e., Blockchain Technologies and First Trust go up and down completely randomly.

Pair Corralation between Blockchain Technologies and First Trust

Assuming the 90-day trading horizon Blockchain Technologies ETF is expected to under-perform the First Trust. In addition to that, Blockchain Technologies is 4.28 times more volatile than First Trust Canadian. It trades about -0.04 of its total potential returns per unit of risk. First Trust Canadian is currently generating about 0.06 per unit of volatility. If you had invested C$ 7,079 in First Trust Canadian on December 12, 2025 and sold it today you would have earned a total of C$ 203.00 from holding First Trust Canadian or generated 2.87% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Blockchain Technologies ETF  vs.  First Trust Canadian

 Performance 
       Timeline  
Blockchain Technologies 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, Blockchain Technologies ETF generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. In spite of latest unfluctuating performance, the etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF's investors. ...more
First Trust Canadian 
Risk-Adjusted Performance
Mild
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on First Trust Canadian rank lower than 4% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. In spite of very healthy basic indicators, First Trust is not utilizing all of its potential. The recent price disarray may contribute to short-term losses for investors. ...more

Blockchain Technologies and First Trust Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Blockchain Technologies and First Trust

Pair trading between Blockchain Technologies and First Trust can reduce some unsystematic risk by balancing one position against another. The objective is to profit from relative movement while reducing dependence on the market's overall direction.
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The information on this page should be treated as a complementary input when building or adjusting a diversified portfolio. The stronger workflow is to validate these signals with other models before acting. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.

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