Correlation Between Vanguard and FT Cboe
Can any of the company-specific risk be diversified away by investing in both Vanguard and FT Cboe 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 Vanguard and FT Cboe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard SP Mid Cap and FT Cboe Vest, you can compare the effects of market volatilities on Vanguard and FT Cboe 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 Vanguard with a short position of FT Cboe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard and FT Cboe.
Diversification Opportunities for Vanguard and FT Cboe
Very poor diversification
The 3 months correlation between Vanguard and BUFQ is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard SP Mid Cap and FT Cboe Vest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Cboe Vest and Vanguard 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 Vanguard SP Mid Cap are associated (or correlated) with FT Cboe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Cboe Vest has no effect on the direction of Vanguard i.e., Vanguard and FT Cboe go up and down completely randomly.
Pair Corralation between Vanguard and FT Cboe
Given the investment horizon of 90 days Vanguard SP Mid Cap is expected to generate 1.98 times more return on investment than FT Cboe. However, Vanguard is 1.98 times more volatile than FT Cboe Vest. It trades about 0.05 of its potential returns per unit of risk. FT Cboe Vest is currently generating about 0.09 per unit of risk. If you would invest 11,832 in Vanguard SP Mid Cap on October 7, 2025 and sell it today you would earn a total of 360.00 from holding Vanguard SP Mid Cap or generate 3.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard SP Mid Cap vs. FT Cboe Vest
Performance |
| Timeline |
| Vanguard SP Mid |
| FT Cboe Vest |
Vanguard and FT Cboe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard and FT Cboe
The main advantage of trading using opposite Vanguard and FT Cboe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard position performs unexpectedly, FT Cboe 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 FT Cboe will offset losses from the drop in FT Cboe's long position.| Vanguard vs. Vanguard SP Small Cap | Vanguard vs. Vanguard SP Mid Cap | Vanguard vs. Vanguard Russell 2000 | Vanguard vs. SPDR MSCI USA |
| FT Cboe vs. First Trust Exchange Traded | FT Cboe vs. FT Cboe Vest | FT Cboe vs. FT Cboe Vest | FT Cboe vs. First Trust Exchange Traded |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |