Correlation Between BetaPro SPTSX and First Trust
Can any of the company-specific risk be diversified away by investing in both BetaPro SPTSX and First Trust 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 BetaPro SPTSX and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro SPTSX Capped and First Trust Canadian, you can compare the effects of market volatilities on BetaPro SPTSX and First Trust 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 BetaPro SPTSX with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SPTSX and First Trust.
Diversification Opportunities for BetaPro SPTSX and First Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BetaPro and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SPTSX Capped 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 BetaPro SPTSX 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 BetaPro SPTSX Capped 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 BetaPro SPTSX i.e., BetaPro SPTSX and First Trust go up and down completely randomly.
Pair Corralation between BetaPro SPTSX and First Trust
If you would invest 7,024 in First Trust Canadian on November 12, 2025 and sell it today you would earn a total of 440.00 from holding First Trust Canadian or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BetaPro SPTSX Capped vs. First Trust Canadian
Performance |
| Timeline |
| BetaPro SPTSX Capped |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| First Trust Canadian |
BetaPro SPTSX and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BetaPro SPTSX and First Trust
The main advantage of trading using opposite BetaPro SPTSX and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SPTSX position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.The idea behind BetaPro SPTSX Capped and First Trust Canadian pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| First Trust vs. iShares ESG Equity | First Trust vs. iShares MSCI Min | First Trust vs. Invesco RAFI Canadian | First Trust vs. Desjardins RI Developed |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |