This module allows you to analyze existing cross correlation between First Trust Japan AlphaDEX ETF and iShares MSCI Japan. You can compare the effects of market volatilities on First Trust and iShares MSCI 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 iShares MSCI. See also your portfolio center
. Please also check ongoing floating volatility patterns of First Trust
and iShares MSCI
First Trust Japan AlphaDEX ETF vs iShares MSCI Japan
Considering 30-days investment horizon, First Trust is expected to generate 1.27 times less return on investment than iShares MSCI. But when comparing it to its historical volatility, First Trust Japan AlphaDEX ETF is 1.01 times less risky than iShares MSCI. It trades about 0.35 of its potential returns per unit of risk. iShares MSCI Japan is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 6,062 in iShares MSCI Japan on December 18, 2017 and sell it today you would earn a total of 335 from holding iShares MSCI Japan or generate 5.53% return on investment over 30 days.
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No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding First Trust Japan AlphaDEX ETF and iShares MSCI Japan in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Japan 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 Japan AlphaDEX ETF are associated (or correlated) with iShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Japan has no effect on the direction of First Trust i.e. First Trust and iShares MSCI go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in First Trust Japan AlphaDEX ETF are ranked lower than 22 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in iShares MSCI Japan are ranked lower than 28 (%) of all global equities and portfolios over the last 30 days.