Correlation Between First Trust and Roundhill Acquirers

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

By analyzing existing cross correlation between First Trust Multi and Roundhill Acquirers Deep, you can compare the effects of market volatilities on First Trust and Roundhill Acquirers 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 Roundhill Acquirers. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and Roundhill Acquirers.

Diversification Opportunities for First Trust and Roundhill Acquirers

0.84

Correlation Coefficient

First Trust  Roundhill Acquirers

Very poor diversification

The 3 months correlation between First and Roundhill is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Multi and Roundhill Acquirers Deep in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Acquirers Deep 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 Multi are associated (or correlated) with Roundhill Acquirers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Acquirers Deep has no effect on the direction of First Trust i.e., First Trust and Roundhill Acquirers go up and down completely randomly.

Pair Corralation between First Trust and Roundhill Acquirers

Considering the 90-day investment horizon First Trust is expected to generate 1.36 times less return on investment than Roundhill Acquirers. But when comparing it to its historical volatility, First Trust Multi is 1.33 times less risky than Roundhill Acquirers. It trades about 0.08 of its potential returns per unit of risk. Roundhill Acquirers Deep is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,297  in Roundhill Acquirers Deep on August 4, 2025 and sell it today you would earn a total of  206.00  from holding Roundhill Acquirers Deep or generate 6.25% return on investment over 90 days.

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

First Trust Multi  vs.  Roundhill Acquirers Deep

First Trust Multi

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in First Trust Multi are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, First Trust is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Roundhill Acquirers Deep

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Roundhill Acquirers Deep are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile technical and fundamental indicators, Roundhill Acquirers may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with First Trust and Roundhill Acquirers

The main advantage of trading using opposite First Trust and Roundhill Acquirers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, Roundhill Acquirers 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 Roundhill Acquirers will offset losses from the drop in Roundhill Acquirers' long position.

The idea behind First Trust Multi and Roundhill Acquirers Deep 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.