Correlation Between Mh Elite and First Trust
Can any of the company-specific risk be diversified away by investing in both Mh Elite 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 Mh Elite and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mh Elite Fund and First Trust Preferred, you can compare the effects of market volatilities on Mh Elite 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 Mh Elite with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mh Elite and First Trust.
Diversification Opportunities for Mh Elite and First Trust
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MHEFX and First is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mh Elite Fund and First Trust Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Preferred and Mh Elite 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 Mh Elite Fund 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 Preferred has no effect on the direction of Mh Elite i.e., Mh Elite and First Trust go up and down completely randomly.
Pair Corralation between Mh Elite and First Trust
Assuming the 90 days horizon Mh Elite Fund is expected to generate 4.32 times more return on investment than First Trust. However, Mh Elite is 4.32 times more volatile than First Trust Preferred. It trades about 0.23 of its potential returns per unit of risk. First Trust Preferred is currently generating about 0.47 per unit of risk. If you would invest 847.00 in Mh Elite Fund on May 30, 2025 and sell it today you would earn a total of 71.00 from holding Mh Elite Fund or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Mh Elite Fund vs. First Trust Preferred
Performance |
| Timeline |
| Mh Elite Fund |
| First Trust Preferred |
Mh Elite and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mh Elite and First Trust
The main advantage of trading using opposite Mh Elite and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mh Elite 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.| Mh Elite vs. Mh Elite Income | Mh Elite vs. Mh Elite Small | Mh Elite vs. Mh Elite Select | Mh Elite vs. Target Retirement 2040 |
| First Trust vs. First Trust Managed | First Trust vs. Franklin Templeton Multi Asset | First Trust vs. First Trust Multi Strategy | First Trust vs. First Trust Short |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |