Correlation Between First Trust and WisdomTree Cloud
Can any of the company-specific risk be diversified away by investing in both First Trust and WisdomTree Cloud 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 Cloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Europe and WisdomTree Cloud Computing, you can compare the effects of market volatilities on First Trust and WisdomTree Cloud 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 Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and WisdomTree Cloud.
Diversification Opportunities for First Trust and WisdomTree Cloud
-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 Europe and WisdomTree Cloud Computing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Cloud Com 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 Europe are associated (or correlated) with WisdomTree Cloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Cloud Com has no effect on the direction of First Trust i.e., First Trust and WisdomTree Cloud go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree Cloud
Considering the 90-day investment horizon First Trust Europe is expected to generate 0.46 times more return on investment than WisdomTree Cloud. However, First Trust Europe is 2.19 times less risky than WisdomTree Cloud. It trades about 0.28 of its potential returns per unit of risk. WisdomTree Cloud Computing is currently generating about -0.17 per unit of risk. If you would invest 5,011 in First Trust Europe on November 15, 2025 and sell it today you would earn a total of 768.00 from holding First Trust Europe or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Europe vs. WisdomTree Cloud Computing
Performance |
| Timeline |
| First Trust Europe |
| WisdomTree Cloud Com |
First Trust and WisdomTree Cloud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree Cloud
The main advantage of trading using opposite First Trust and WisdomTree Cloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, WisdomTree Cloud 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 Cloud will offset losses from the drop in WisdomTree Cloud's long position.| First Trust vs. iShares MSCI Japan | First Trust vs. WisdomTree International MidCap | First Trust vs. iShares Small Cap | First Trust vs. iShares Currency Hedged |
| WisdomTree Cloud vs. WisdomTree Japan SmallCap | WisdomTree Cloud vs. Global X Cloud | WisdomTree Cloud vs. WisdomTree SmallCap Quality | WisdomTree Cloud vs. iShares MSCI Netherlands |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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