Correlation Between FT AlphaDEX and CI Galaxy
Can any of the company-specific risk be diversified away by investing in both FT AlphaDEX and CI Galaxy 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 FT AlphaDEX and CI Galaxy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT AlphaDEX Industrials and CI Galaxy Multi Crypto, you can compare the effects of market volatilities on FT AlphaDEX and CI Galaxy 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 FT AlphaDEX with a short position of CI Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT AlphaDEX and CI Galaxy.
Diversification Opportunities for FT AlphaDEX and CI Galaxy
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FHG and CMCX-B is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding FT AlphaDEX Industrials and CI Galaxy Multi Crypto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Galaxy Multi and FT AlphaDEX 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 FT AlphaDEX Industrials are associated (or correlated) with CI Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Galaxy Multi has no effect on the direction of FT AlphaDEX i.e., FT AlphaDEX and CI Galaxy go up and down completely randomly.
Pair Corralation between FT AlphaDEX and CI Galaxy
Assuming the 90 days trading horizon FT AlphaDEX is expected to generate 3.05 times less return on investment than CI Galaxy. But when comparing it to its historical volatility, FT AlphaDEX Industrials is 2.35 times less risky than CI Galaxy. It trades about 0.06 of its potential returns per unit of risk. CI Galaxy Multi Crypto is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,093 in CI Galaxy Multi Crypto on December 10, 2024 and sell it today you would earn a total of 277.00 from holding CI Galaxy Multi Crypto or generate 25.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
FT AlphaDEX Industrials vs. CI Galaxy Multi Crypto
Performance |
Timeline |
FT AlphaDEX Industrials |
CI Galaxy Multi |
FT AlphaDEX and CI Galaxy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FT AlphaDEX and CI Galaxy
The main advantage of trading using opposite FT AlphaDEX and CI Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT AlphaDEX position performs unexpectedly, CI Galaxy 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 CI Galaxy will offset losses from the drop in CI Galaxy's long position.FT AlphaDEX vs. First Trust AlphaDEX | FT AlphaDEX vs. First Trust AlphaDEX | FT AlphaDEX vs. First Trust Senior | FT AlphaDEX vs. First Trust Value |
CI Galaxy vs. NBI High Yield | CI Galaxy vs. NBI Unconstrained Fixed | CI Galaxy vs. Mackenzie Developed ex North | CI Galaxy vs. BMO Short Term Bond |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |