Correlation Between FT Vest and Driven Brands
Can any of the company-specific risk be diversified away by investing in both FT Vest and Driven Brands 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 Driven Brands 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 Driven Brands Holdings, you can compare the effects of market volatilities on FT Vest and Driven Brands 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 Driven Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Vest and Driven Brands.
Diversification Opportunities for FT Vest and Driven Brands
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DHDG and Driven is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding FT Vest Equity and Driven Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Driven Brands Holdings 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 Driven Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Driven Brands Holdings has no effect on the direction of FT Vest i.e., FT Vest and Driven Brands go up and down completely randomly.
Pair Corralation between FT Vest and Driven Brands
Given the investment horizon of 90 days FT Vest Equity is expected to generate 0.24 times more return on investment than Driven Brands. However, FT Vest Equity is 4.15 times less risky than Driven Brands. It trades about 0.07 of its potential returns per unit of risk. Driven Brands Holdings is currently generating about -0.02 per unit of risk. If you would invest 3,115 in FT Vest Equity on September 1, 2025 and sell it today you would earn a total of 266.00 from holding FT Vest Equity or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FT Vest Equity vs. Driven Brands Holdings
Performance |
| Timeline |
| FT Vest Equity |
| Driven Brands Holdings |
FT Vest and Driven Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Vest and Driven Brands
The main advantage of trading using opposite FT Vest and Driven Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Vest position performs unexpectedly, Driven Brands 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 Driven Brands will offset losses from the drop in Driven Brands' long position.| FT Vest vs. First Trust Cboe | FT Vest vs. FT Cboe Vest | FT Vest vs. Innovator SP 500 | FT Vest vs. Innovator SP 500 |
| Driven Brands vs. FT Vest Equity | Driven Brands vs. Zillow Group Class | Driven Brands vs. Northern Lights | Driven Brands vs. VanEck Vectors Moodys |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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