Correlation Between NBI Sustainable and First Trust

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

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

Diversification Opportunities for NBI Sustainable and First Trust

0.0

Correlation Coefficient

NBI Sustainable  First Trust

Pay attention - limited upside

The 3 months correlation between NBI and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NBI Sustainable Canadian and First Trust Canadian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Canadian and NBI Sustainable 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 NBI Sustainable Canadian 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 Canadian has no effect on the direction of NBI Sustainable i.e., NBI Sustainable and First Trust go up and down completely randomly.

Pair Corralation between NBI Sustainable and First Trust

If you would invest  0.00  in First Trust Canadian on August 26, 2025 and sell it today you would earn a total of  0.00  from holding First Trust Canadian or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

NBI Sustainable Canadian  vs.  First Trust Canadian

NBI Sustainable Canadian

Risk-Adjusted Performance

Weakest

Over the last 90 days NBI Sustainable Canadian has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, NBI Sustainable is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

First Trust Canadian

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Trust Canadian are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, First Trust may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with NBI Sustainable and First Trust

The main advantage of trading using opposite NBI Sustainable and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBI Sustainable 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 NBI Sustainable Canadian and First Trust Canadian 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.

Check out your portfolio center.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.