Correlation Between Mutual Of and First Trust
Can any of the company-specific risk be diversified away by investing in both Mutual Of 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 Mutual Of and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and First Trust Short, you can compare the effects of market volatilities on Mutual Of 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 Mutual Of with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and First Trust.
Diversification Opportunities for Mutual Of and First Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mutual and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and First Trust Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Short and Mutual Of 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 Mutual Of America 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 Short has no effect on the direction of Mutual Of i.e., Mutual Of and First Trust go up and down completely randomly.
Pair Corralation between Mutual Of and First Trust
If you would invest 1,764 in First Trust Short on May 26, 2025 and sell it today you would earn a total of 47.00 from holding First Trust Short or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Mutual Of America vs. First Trust Short
Performance |
| Timeline |
| Mutual Of America |
Risk-Adjusted Performance
Solid
Weak | Strong |
| First Trust Short |
Mutual Of and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and First Trust
The main advantage of trading using opposite Mutual Of and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of 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.| Mutual Of vs. Transamerica Emerging Markets | Mutual Of vs. Ashmore Emerging Markets | Mutual Of vs. Prudential Emerging Markets | Mutual Of vs. Saat Market Growth |
| First Trust vs. Rbc Bluebay Emerging | First Trust vs. Ab Bond Inflation | First Trust vs. Franklin Emerging Market | First Trust vs. Doubleline Emerging Markets |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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