Correlation Between First Asset and First Trust

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Can company-specific risk be reduced by holding First Asset Tech and First Trust Dow together? Use this page to interpret how First Asset Tech and First Trust Dow interact and how much diversifiable risk remains.
Cross-correlation between First Asset Tech and First Trust Dow helps estimate portfolio overlap before combining both positions. You can also test a long First Asset and short First Trust structure to evaluate relative-value behavior. Review volatility patterns in First Asset and First Trust. Go to your portfolio center

Diversification Opportunities for First Asset and First Trust

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between First and First is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding First Asset Tech and First Trust Dow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Dow and First Asset 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 Asset Tech 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 Dow has no effect on the direction of First Asset i.e., First Asset and First Trust go up and down completely randomly.

Pair Corralation between First Asset and First Trust

Assuming the 90-day trading horizon First Asset Tech is expected to generate 1.13 times more return on investment than First Trust. However, First Asset is 1.13 times more volatile than First Trust Dow. It trades about -0.04 of its potential returns per unit of risk. First Trust Dow is currently generating about -0.14 per unit of risk. If you had invested C$ 2,292 in First Asset Tech on December 14, 2025 and sold it today you would have lost C$ 89.00 from holding First Asset Tech or given up 3.88% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

First Asset Tech  vs.  First Trust Dow

 Performance 
       Timeline  
First Asset Tech 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, First Asset Tech generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. In spite of very healthy technical and fundamental indicators, First Asset is not utilizing all of its potential. The recent price disarray may contribute to short-term losses for investors. ...more
First Trust Dow 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, First Trust Dow generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. In spite of latest weak performance, the etf's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF's investors. ...more

First Asset and First Trust Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with First Asset and First Trust

Pair trading between First Asset and First Trust can reduce some unsystematic risk by balancing one position against another. The objective is to profit from relative movement while reducing dependence on the market's overall direction.
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The information on this page should be treated as a complementary input when building or adjusting a diversified portfolio. The stronger workflow is to validate these signals with other models before acting. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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