This module allows you to analyze existing cross correlation between First Trust South Korea AlphaDEX ETF and iShares MSCI Germany. 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 South Korea AlphaD vs iShares MSCI Germany
Considering 30-days investment horizon, First Trust South Korea AlphaDEX ETF is expected to generate 1.42 times more return on investment than iShares MSCI. However, First Trust is 1.42 times more volatile than iShares MSCI Germany. It trades about 0.38 of its potential returns per unit of risk. iShares MSCI Germany is currently generating about 0.26 per unit of risk. If you would invest 2,893 in First Trust South Korea AlphaDEX ETF on December 18, 2017 and sell it today you would earn a total of 197 from holding First Trust South Korea AlphaDEX ETF or generate 6.81% return on investment over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding First Trust South Korea AlphaD and iShares MSCI Germany in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Germany 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 South Korea 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 Germany 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 South Korea AlphaDEX ETF are ranked lower than 25 (%) 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 Germany are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.