Correlation Between BetaPro SP and First Asset

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Can any of the company-specific risk be diversified away by investing in both BetaPro SP and First Asset 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 SP and First Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BetaPro SP 500 and First Asset Tech, you can compare the effects of market volatilities on BetaPro SP and First Asset 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 SP with a short position of First Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of BetaPro SP and First Asset.

Diversification Opportunities for BetaPro SP and First Asset

-0.82
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between BetaPro and First is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding BetaPro SP 500 and First Asset Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Asset Tech and BetaPro SP 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 SP 500 are associated (or correlated) with First Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Asset Tech has no effect on the direction of BetaPro SP i.e., BetaPro SP and First Asset go up and down completely randomly.

Pair Corralation between BetaPro SP and First Asset

Assuming the 90 days trading horizon BetaPro SP 500 is expected to under-perform the First Asset. But the etf apears to be less risky and, when comparing its historical volatility, BetaPro SP 500 is 1.66 times less risky than First Asset. The etf trades about -0.08 of its potential returns per unit of risk. The First Asset Tech is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2,194  in First Asset Tech on October 12, 2025 and sell it today you would earn a total of  199.00  from holding First Asset Tech or generate 9.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

BetaPro SP 500  vs.  First Asset Tech

 Performance 
       Timeline  
BetaPro SP 500 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days BetaPro SP 500 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, BetaPro SP is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
First Asset Tech 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in First Asset Tech are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, First Asset may actually be approaching a critical reversion point that can send shares even higher in February 2026.

BetaPro SP and First Asset Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BetaPro SP and First Asset

The main advantage of trading using opposite BetaPro SP and First Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BetaPro SP position performs unexpectedly, First Asset 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 Asset will offset losses from the drop in First Asset's long position.
The idea behind BetaPro SP 500 and First Asset Tech 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.
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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