Correlation Between Series Portfolios and First Trust
Can any of the company-specific risk be diversified away by investing in both Series Portfolios 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 Series Portfolios and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Series Portfolios Trust and First Trust Exchange Traded, you can compare the effects of market volatilities on Series Portfolios 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 Series Portfolios with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Series Portfolios and First Trust.
Diversification Opportunities for Series Portfolios and First Trust
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Series and First is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Series Portfolios Trust and First Trust Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Exchange and Series Portfolios 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 Series Portfolios Trust 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 Exchange has no effect on the direction of Series Portfolios i.e., Series Portfolios and First Trust go up and down completely randomly.
Pair Corralation between Series Portfolios and First Trust
Given the investment horizon of 90 days Series Portfolios Trust is expected to under-perform the First Trust. In addition to that, Series Portfolios is 1.37 times more volatile than First Trust Exchange Traded. It trades about -0.03 of its total potential returns per unit of risk. First Trust Exchange Traded is currently generating about -0.02 per unit of volatility. If you would invest 4,013 in First Trust Exchange Traded on August 25, 2025 and sell it today you would lose (42.00) from holding First Trust Exchange Traded or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Series Portfolios Trust vs. First Trust Exchange Traded
Performance |
| Timeline |
| Series Portfolios Trust |
| First Trust Exchange |
Series Portfolios and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Series Portfolios and First Trust
The main advantage of trading using opposite Series Portfolios and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Series Portfolios 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.| Series Portfolios vs. Putnam ETF Trust | Series Portfolios vs. The Advisors Inner | Series Portfolios vs. First Trust Nasdaq | Series Portfolios vs. First Trust Bloomberg |
| First Trust vs. First Trust Exchange Traded | First Trust vs. Northern Lights | First Trust vs. iShares Trust | First Trust vs. WisdomTree New Economy |
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.
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