Correlation Between First Asset and Wealthsimple North
Can any of the company-specific risk be diversified away by investing in both First Asset and Wealthsimple North 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 Asset and Wealthsimple North into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Asset Tech and Wealthsimple North America, you can compare the effects of market volatilities on First Asset and Wealthsimple North 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 Asset with a short position of Wealthsimple North. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Asset and Wealthsimple North.
Diversification Opportunities for First Asset and Wealthsimple North
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Wealthsimple is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding First Asset Tech and Wealthsimple North America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wealthsimple North 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 Wealthsimple North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wealthsimple North has no effect on the direction of First Asset i.e., First Asset and Wealthsimple North go up and down completely randomly.
Pair Corralation between First Asset and Wealthsimple North
Assuming the 90 days trading horizon First Asset Tech is expected to generate 1.89 times more return on investment than Wealthsimple North. However, First Asset is 1.89 times more volatile than Wealthsimple North America. It trades about 0.12 of its potential returns per unit of risk. Wealthsimple North America is currently generating about 0.11 per unit of risk. If you would invest 2,194 in First Asset Tech on October 12, 2025 and sell it today you would earn a total of 199.00 from holding First Asset Tech or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Asset Tech vs. Wealthsimple North America
Performance |
| Timeline |
| First Asset Tech |
| Wealthsimple North |
First Asset and Wealthsimple North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Asset and Wealthsimple North
The main advantage of trading using opposite First Asset and Wealthsimple North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Asset position performs unexpectedly, Wealthsimple North 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 Wealthsimple North will offset losses from the drop in Wealthsimple North's long position.| First Asset vs. Hamilton Technology Yield | First Asset vs. iShares SPTSX Capped | First Asset vs. First Asset Morningstar | First Asset vs. CI Canada Quality |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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