Correlation Between Evaluator Growth and First Trust

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

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

Diversification Opportunities for Evaluator Growth and First Trust

0.97

Correlation Coefficient

Evaluator Growth  First Trust

Almost no diversification

The 3 months correlation between Evaluator and First is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Evaluator Growth Rms and First Trust Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Preferred and Evaluator Growth 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 Evaluator Growth Rms 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 Preferred has no effect on the direction of Evaluator Growth i.e., Evaluator Growth and First Trust go up and down completely randomly.

Pair Corralation between Evaluator Growth and First Trust

Assuming the 90 days horizon Evaluator Growth Rms is expected to generate 4.06 times more return on investment than First Trust. However, Evaluator Growth is 4.06 times more volatile than First Trust Preferred. It trades about 0.31 of its potential returns per unit of risk. First Trust Preferred is currently generating about 0.5 per unit of risk. If you would invest  1,147  in Evaluator Growth Rms on April 29, 2025 and sell it today you would earn a total of  131.00  from holding Evaluator Growth Rms or generate 11.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Evaluator Growth Rms  vs.  First Trust Preferred

Evaluator Growth Rms

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Evaluator Growth Rms are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Evaluator Growth may actually be approaching a critical reversion point that can send shares even higher in August 2025.

First Trust Preferred

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in First Trust Preferred are ranked lower than 38 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, First Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Evaluator Growth and First Trust

The main advantage of trading using opposite Evaluator Growth and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evaluator Growth 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 Evaluator Growth Rms and First Trust Preferred 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.