Correlation Between First Trust and Elevation Series

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

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

Diversification Opportunities for First Trust and Elevation Series

-0.02

Correlation Coefficient

First Trust  Elevation Series

Good diversification

The 3 months correlation between First and Elevation is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Indxx and Elevation Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevation Series Trust 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 Indxx are associated (or correlated) with Elevation Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevation Series Trust has no effect on the direction of First Trust i.e., First Trust and Elevation Series go up and down completely randomly.

Pair Corralation between First Trust and Elevation Series

Given the investment horizon of 90 days First Trust Indxx is expected to generate 0.69 times more return on investment than Elevation Series. However, First Trust Indxx is 1.45 times less risky than Elevation Series. It trades about 0.19 of its potential returns per unit of risk. Elevation Series Trust is currently generating about -0.02 per unit of risk. If you would invest  5,398  in First Trust Indxx on July 26, 2025 and sell it today you would earn a total of  434.00  from holding First Trust Indxx or generate 8.04% return on investment over 90 days.

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

First Trust Indxx  vs.  Elevation Series Trust

First Trust Indxx

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Trust Indxx are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, First Trust may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Elevation Series Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Elevation Series Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Elevation Series is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with First Trust and Elevation Series

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

The idea behind First Trust Indxx and Elevation Series Trust 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.