Correlation Between First Trust and Aptus Defined
Can any of the company-specific risk be diversified away by investing in both First Trust and Aptus Defined 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 Aptus Defined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Multi Asset and Aptus Defined Risk, you can compare the effects of market volatilities on First Trust and Aptus Defined 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 Aptus Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Aptus Defined.
Diversification Opportunities for First Trust and Aptus Defined
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and Aptus is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Multi Asset and Aptus Defined Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptus Defined Risk 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 Multi Asset are associated (or correlated) with Aptus Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptus Defined Risk has no effect on the direction of First Trust i.e., First Trust and Aptus Defined go up and down completely randomly.
Pair Corralation between First Trust and Aptus Defined
Given the investment horizon of 90 days First Trust Multi Asset is expected to generate 0.98 times more return on investment than Aptus Defined. However, First Trust Multi Asset is 1.02 times less risky than Aptus Defined. It trades about 0.17 of its potential returns per unit of risk. Aptus Defined Risk is currently generating about 0.04 per unit of risk. If you would invest 1,592 in First Trust Multi Asset on June 9, 2025 and sell it today you would earn a total of 29.00 from holding First Trust Multi Asset or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Multi Asset vs. Aptus Defined Risk
Performance |
| Timeline |
| First Trust Multi |
| Aptus Defined Risk |
First Trust and Aptus Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Aptus Defined
The main advantage of trading using opposite First Trust and Aptus Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Aptus Defined 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 Aptus Defined will offset losses from the drop in Aptus Defined's long position.| First Trust vs. Global X SuperIncome | First Trust vs. iShares Morningstar Multi Asset | First Trust vs. Invesco CEF Income | First Trust vs. VanEck Fallen Angel |
| Aptus Defined vs. Amplify BlackSwan Growth | Aptus Defined vs. Aptus Collared Income | Aptus Defined vs. Aptus Drawdown Managed | Aptus Defined vs. Cambria Tail Risk |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |