Correlation Between First Trust and OneAscent Emerging

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

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

Diversification Opportunities for First Trust and OneAscent Emerging

0.75

Correlation Coefficient

First Trust  OneAscent Emerging

Poor diversification

The 3 months correlation between First and OneAscent is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding First Trust China and OneAscent Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent Emerging 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 China are associated (or correlated) with OneAscent Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent Emerging has no effect on the direction of First Trust i.e., First Trust and OneAscent Emerging go up and down completely randomly.

Pair Corralation between First Trust and OneAscent Emerging

Considering the 90-day investment horizon First Trust is expected to generate 1.7 times less return on investment than OneAscent Emerging. In addition to that, First Trust is 1.38 times more volatile than OneAscent Emerging Markets. It trades about 0.05 of its total potential returns per unit of risk. OneAscent Emerging Markets is currently generating about 0.12 per unit of volatility. If you would invest  3,226  in OneAscent Emerging Markets on September 1, 2025 and sell it today you would earn a total of  243.00  from holding OneAscent Emerging Markets or generate 7.53% return on investment over 90 days.

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

First Trust China  vs.  OneAscent Emerging Markets

First Trust China

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in First Trust China are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong 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.

OneAscent Emerging

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in OneAscent Emerging Markets are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, OneAscent Emerging may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with First Trust and OneAscent Emerging

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

The idea behind First Trust China and OneAscent Emerging Markets 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..