Correlation Between First Trust and Altaba
Can any of the company-specific risk be diversified away by investing in both First Trust and Altaba 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 Trust and Altaba into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Energy and Altaba Inc, you can compare the effects of market volatilities on First Trust and Altaba 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 Trust with a short position of Altaba. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Altaba.
Diversification Opportunities for First Trust and Altaba
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Altaba is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Energy and Altaba Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altaba Inc and First Trust 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 Trust Energy are associated (or correlated) with Altaba. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altaba Inc has no effect on the direction of First Trust i.e., First Trust and Altaba go up and down completely randomly.
Pair Corralation between First Trust and Altaba
If you would invest 1,565 in First Trust Energy on January 25, 2024 and sell it today you would earn a total of 51.00 from holding First Trust Energy or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
First Trust Energy vs. Altaba Inc
Performance |
| Timeline |
| First Trust Energy |
| Altaba Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Trust and Altaba Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and Altaba
The main advantage of trading using opposite First Trust and Altaba positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Altaba 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 Altaba will offset losses from the drop in Altaba's long position.| First Trust vs. First Trust Mlp | First Trust vs. Eagle Point Income | First Trust vs. European Equity Closed | First Trust vs. John Hancock Income |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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