Correlation Between Fidelity MSCI and FT Cboe

Can any of the company-specific risk be diversified away by investing in both Fidelity MSCI 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 Fidelity MSCI and FT Cboe into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fidelity MSCI Industrials and FT Cboe Vest, you can compare the effects of market volatilities on Fidelity MSCI 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 Fidelity MSCI with a short position of FT Cboe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity MSCI and FT Cboe.

Diversification Opportunities for Fidelity MSCI and FT Cboe

0.0

Correlation Coefficient

Fidelity MSCI  FT Cboe

Pay attention - limited upside

The 3 months correlation between Fidelity and BUFQ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity MSCI Industrials 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 Fidelity MSCI 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 Fidelity MSCI Industrials 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 Fidelity MSCI i.e., Fidelity MSCI and FT Cboe go up and down completely randomly.

Pair Corralation between Fidelity MSCI and FT Cboe

If you would invest  0.00  in FT Cboe Vest on August 26, 2025 and sell it today you would earn a total of  0.00  from holding FT Cboe Vest or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Fidelity MSCI Industrials  vs.  FT Cboe Vest

Fidelity MSCI Industrials

Risk-Adjusted Performance

Weakest

Over the last 90 days Fidelity MSCI Industrials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Fidelity MSCI is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

FT Cboe Vest

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in FT Cboe Vest are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, FT Cboe is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Fidelity MSCI and FT Cboe

The main advantage of trading using opposite Fidelity MSCI and FT Cboe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity MSCI 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.

The idea behind Fidelity MSCI Industrials and FT Cboe Vest pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.