Correlation Between First Trust and WisdomTree India
Can any of the company-specific risk be diversified away by investing in both First Trust and WisdomTree India 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 First Trust and WisdomTree India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Emerging and WisdomTree India Hedged, you can compare the effects of market volatilities on First Trust and WisdomTree India 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 First Trust with a short position of WisdomTree India. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and WisdomTree India.
Diversification Opportunities for First Trust and WisdomTree India
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and WisdomTree is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Emerging and WisdomTree India Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree India Hedged and First Trust 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 First Trust Emerging are associated (or correlated) with WisdomTree India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree India Hedged has no effect on the direction of First Trust i.e., First Trust and WisdomTree India go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree India
Considering the 90-day investment horizon First Trust Emerging is expected to generate 1.32 times more return on investment than WisdomTree India. However, First Trust is 1.32 times more volatile than WisdomTree India Hedged. It trades about 0.25 of its potential returns per unit of risk. WisdomTree India Hedged is currently generating about -0.08 per unit of risk. If you would invest 2,690 in First Trust Emerging on December 2, 2025 and sell it today you would earn a total of 442.50 from holding First Trust Emerging or generate 16.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Emerging vs. WisdomTree India Hedged
Performance |
| Timeline |
| First Trust Emerging |
| WisdomTree India Hedged |
First Trust and WisdomTree India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree India
The main advantage of trading using opposite First Trust and WisdomTree India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, WisdomTree India 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 WisdomTree India will offset losses from the drop in WisdomTree India's long position.| First Trust vs. ProShares Equities for | First Trust vs. Allspring Exchange Traded Funds | First Trust vs. iShares Environmentally Aware | First Trust vs. WHITEWOLF Publicly Listed |
| WisdomTree India vs. Simplify Exchange Traded | WisdomTree India vs. Tidal ETF Trust | WisdomTree India vs. Amplify ETF Trust | WisdomTree India vs. AIM ETF Products |
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.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |