Correlation Between ACGR and First Trust

Can any of the company-specific risk be diversified away by investing in both ACGR 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 ACGR and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ACGR and First Trust EIP, you can compare the effects of market volatilities on ACGR 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 ACGR with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACGR and First Trust.

Diversification Opportunities for ACGR and First Trust

0.88

Correlation Coefficient

ACGR  First Trust

Very poor diversification

The 3 months correlation between ACGR and First is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ACGR and First Trust EIP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust EIP and ACGR 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 ACGR 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 EIP has no effect on the direction of ACGR i.e., ACGR and First Trust go up and down completely randomly.

Pair Corralation between ACGR and First Trust

If you would invest  6,474  in ACGR on July 28, 2025 and sell it today you would earn a total of  149.00  from holding ACGR or generate 2.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	4.55%
Values	Daily Returns

ACGR  vs.  First Trust EIP

ACGR

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ACGR are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical and fundamental indicators, ACGR may actually be approaching a critical reversion point that can send shares even higher in November 2025.

First Trust EIP

Risk-Adjusted Performance

Weakest

Over the last 90 days First Trust EIP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, First Trust is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ACGR and First Trust

The main advantage of trading using opposite ACGR and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACGR 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.

The idea behind ACGR and First Trust EIP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.