Correlation Between FT Vest and Strategy Shares
Can any of the company-specific risk be diversified away by investing in both FT Vest and Strategy Shares 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 Vest and Strategy Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT Vest Equity and Strategy Shares, you can compare the effects of market volatilities on FT Vest and Strategy Shares 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 Vest with a short position of Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Vest and Strategy Shares.
Diversification Opportunities for FT Vest and Strategy Shares
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DHDG and Strategy is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding FT Vest Equity and Strategy Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares and FT Vest 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 Vest Equity are associated (or correlated) with Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares has no effect on the direction of FT Vest i.e., FT Vest and Strategy Shares go up and down completely randomly.
Pair Corralation between FT Vest and Strategy Shares
Given the investment horizon of 90 days FT Vest Equity is expected to generate 1.39 times more return on investment than Strategy Shares. However, FT Vest is 1.39 times more volatile than Strategy Shares. It trades about 0.19 of its potential returns per unit of risk. Strategy Shares is currently generating about 0.1 per unit of risk. If you would invest 3,244 in FT Vest Equity on September 2, 2025 and sell it today you would earn a total of 131.05 from holding FT Vest Equity or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FT Vest Equity vs. Strategy Shares
Performance |
| Timeline |
| FT Vest Equity |
| Strategy Shares |
FT Vest and Strategy Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Vest and Strategy Shares
The main advantage of trading using opposite FT Vest and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Vest position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' long position.| FT Vest vs. Northern Lights | FT Vest vs. Diamond Hill Funds | FT Vest vs. Dimensional International High | FT Vest vs. JPMorgan Fundamental Data |
| Strategy Shares vs. Freedom Day Dividend | Strategy Shares vs. Franklin Templeton ETF | Strategy Shares vs. iShares MSCI China | Strategy Shares vs. YieldMax Short NVDA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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