Correlation Between FT Vest and ETF Opportunities
Can any of the company-specific risk be diversified away by investing in both FT Vest and ETF Opportunities 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 ETF Opportunities 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 ETF Opportunities Trust, you can compare the effects of market volatilities on FT Vest and ETF Opportunities 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 ETF Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Vest and ETF Opportunities.
Diversification Opportunities for FT Vest and ETF Opportunities
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between JUNM and ETF is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding FT Vest Equity and ETF Opportunities Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Opportunities Trust 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 ETF Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Opportunities Trust has no effect on the direction of FT Vest i.e., FT Vest and ETF Opportunities go up and down completely randomly.
Pair Corralation between FT Vest and ETF Opportunities
Given the investment horizon of 90 days FT Vest is expected to generate 6.21 times less return on investment than ETF Opportunities. But when comparing it to its historical volatility, FT Vest Equity is 8.95 times less risky than ETF Opportunities. It trades about 0.2 of its potential returns per unit of risk. ETF Opportunities Trust is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,332 in ETF Opportunities Trust on September 3, 2025 and sell it today you would earn a total of 261.00 from holding ETF Opportunities Trust or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
FT Vest Equity vs. ETF Opportunities Trust
Performance |
| Timeline |
| FT Vest Equity |
| ETF Opportunities Trust |
FT Vest and ETF Opportunities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Vest and ETF Opportunities
The main advantage of trading using opposite FT Vest and ETF Opportunities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Vest position performs unexpectedly, ETF Opportunities 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 ETF Opportunities will offset losses from the drop in ETF Opportunities' long position.| FT Vest vs. FT Vest Equity | FT Vest vs. Northern Lights | FT Vest vs. Diamond Hill Funds | FT Vest vs. Dimensional International High |
| ETF Opportunities vs. Series Portfolios Trust | ETF Opportunities vs. First Trust Multi Asset | ETF Opportunities vs. Collaborative Investment Series | ETF Opportunities vs. Northern Lights |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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