Correlation Between Upright Growth and First Trust

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

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

Diversification Opportunities for Upright Growth and First Trust

0.0

Correlation Coefficient

Upright Growth  First Trust

Pay attention - limited upside

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

Pair Corralation between Upright Growth and First Trust

If you would invest  1,949  in Upright Growth Income on May 16, 2025 and sell it today you would earn a total of  335.00  from holding Upright Growth Income or generate 17.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Upright Growth Income  vs.  First Trust Managed

Upright Growth Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Upright Growth Income are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Upright Growth showed solid returns over the last few months and may actually be approaching a breakup point.

First Trust Managed

Risk-Adjusted Performance

Weak

Over the last 90 days First Trust Managed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, First Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Upright Growth and First Trust

The main advantage of trading using opposite Upright Growth and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upright Growth 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 Upright Growth Income and First Trust Managed 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.