Correlation Between FT Cboe and WisdomTree High
Can any of the company-specific risk be diversified away by investing in both FT Cboe and WisdomTree High 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 WisdomTree High 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 WisdomTree High Income, you can compare the effects of market volatilities on FT Cboe and WisdomTree High 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 WisdomTree High. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Cboe and WisdomTree High.
Diversification Opportunities for FT Cboe and WisdomTree High
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FFEB and WisdomTree is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding FT Cboe Vest and WisdomTree High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree High 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 WisdomTree High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree High Income has no effect on the direction of FT Cboe i.e., FT Cboe and WisdomTree High go up and down completely randomly.
Pair Corralation between FT Cboe and WisdomTree High
Given the investment horizon of 90 days FT Cboe Vest is expected to generate 4.4 times more return on investment than WisdomTree High. However, FT Cboe is 4.4 times more volatile than WisdomTree High Income. It trades about 0.12 of its potential returns per unit of risk. WisdomTree High Income is currently generating about 0.4 per unit of risk. If you would invest 5,615 in FT Cboe Vest on December 3, 2025 and sell it today you would earn a total of 159.00 from holding FT Cboe Vest or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FT Cboe Vest vs. WisdomTree High Income
Performance |
| Timeline |
| FT Cboe Vest |
| WisdomTree High Income |
FT Cboe and WisdomTree High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Cboe and WisdomTree High
The main advantage of trading using opposite FT Cboe and WisdomTree High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Cboe position performs unexpectedly, WisdomTree High 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 High will offset losses from the drop in WisdomTree High's long position.| FT Cboe vs. First Trust Exchange Traded | FT Cboe vs. FT Cboe Vest | FT Cboe vs. FT Cboe Vest | FT Cboe vs. First Trust Exchange Traded |
| WisdomTree High vs. WisdomTree Core Laddered | WisdomTree High vs. SMART Earnings Growth | WisdomTree High vs. Wasatch International Select | WisdomTree High vs. Energy Services Fund |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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