Correlation Between FT Cboe and Peerless Option
Can any of the company-specific risk be diversified away by investing in both FT Cboe and Peerless Option 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 Cboe and Peerless Option into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT Cboe Vest and Peerless Option Income, you can compare the effects of market volatilities on FT Cboe and Peerless Option 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 Cboe with a short position of Peerless Option. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Cboe and Peerless Option.
Diversification Opportunities for FT Cboe and Peerless Option
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between KNG and Peerless is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding FT Cboe Vest and Peerless Option Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peerless Option Income and FT Cboe 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 Cboe Vest are associated (or correlated) with Peerless Option. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peerless Option Income has no effect on the direction of FT Cboe i.e., FT Cboe and Peerless Option go up and down completely randomly.
Pair Corralation between FT Cboe and Peerless Option
Considering the 90-day investment horizon FT Cboe Vest is expected to generate 1.01 times more return on investment than Peerless Option. However, FT Cboe is 1.01 times more volatile than Peerless Option Income. It trades about 0.25 of its potential returns per unit of risk. Peerless Option Income is currently generating about 0.17 per unit of risk. If you would invest 4,771 in FT Cboe Vest on September 5, 2025 and sell it today you would earn a total of 172.00 from holding FT Cboe Vest or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FT Cboe Vest vs. Peerless Option Income
Performance |
| Timeline |
| FT Cboe Vest |
| Peerless Option Income |
FT Cboe and Peerless Option Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Cboe and Peerless Option
The main advantage of trading using opposite FT Cboe and Peerless Option positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Cboe position performs unexpectedly, Peerless Option 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 Peerless Option will offset losses from the drop in Peerless Option's long position.| FT Cboe vs. Strategy Shares | FT Cboe vs. Freedom Day Dividend | FT Cboe vs. Franklin Templeton ETF | FT Cboe vs. iShares MSCI China |
| Peerless Option vs. Strategy Shares | Peerless Option vs. Freedom Day Dividend | Peerless Option vs. Franklin Templeton ETF | Peerless Option vs. iShares MSCI China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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