Correlation Between First Trust and Rockefeller Opportunistic

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

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

Diversification Opportunities for First Trust and Rockefeller Opportunistic

0.95

Correlation Coefficient

First Trust  Rockefeller Opportunistic

Almost no diversification

The 3 months correlation between First and Rockefeller is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Municipal and Rockefeller Opportunistic Muni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rockefeller Opportunistic 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 Municipal are associated (or correlated) with Rockefeller Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rockefeller Opportunistic has no effect on the direction of First Trust i.e., First Trust and Rockefeller Opportunistic go up and down completely randomly.

Pair Corralation between First Trust and Rockefeller Opportunistic

Given the investment horizon of 90 days First Trust Municipal is expected to generate 0.7 times more return on investment than Rockefeller Opportunistic. However, First Trust Municipal is 1.44 times less risky than Rockefeller Opportunistic. It trades about 0.28 of its potential returns per unit of risk. Rockefeller Opportunistic Municipal is currently generating about 0.15 per unit of risk. If you would invest  4,690  in First Trust Municipal on October 4, 2025 and sell it today you would earn a total of  103.00  from holding First Trust Municipal or generate 2.2% return on investment over 90 days.

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

First Trust Municipal  vs.  Rockefeller Opportunistic Muni

First Trust Municipal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Trust Municipal are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, First Trust is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Rockefeller Opportunistic

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Rockefeller Opportunistic Municipal are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Rockefeller Opportunistic is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with First Trust and Rockefeller Opportunistic

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

The idea behind First Trust Municipal and Rockefeller Opportunistic Municipal 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.