Correlation Between First Trust and WisdomTree Core
Can any of the company-specific risk be diversified away by investing in both First Trust and WisdomTree Core 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 Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Managed and WisdomTree Core Laddered, you can compare the effects of market volatilities on First Trust and WisdomTree Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and WisdomTree Core.
Diversification Opportunities for First Trust and WisdomTree Core
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between First and WisdomTree is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Managed and WisdomTree Core Laddered in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Core Laddered 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 Managed are associated (or correlated) with WisdomTree Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Core Laddered has no effect on the direction of First Trust i.e., First Trust and WisdomTree Core go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree Core
Considering the 90-day investment horizon First Trust is expected to generate 1.09 times less return on investment than WisdomTree Core. In addition to that, First Trust is 1.09 times more volatile than WisdomTree Core Laddered. It trades about 0.35 of its total potential returns per unit of risk. WisdomTree Core Laddered is currently generating about 0.42 per unit of volatility. If you would invest 2,570 in WisdomTree Core Laddered on November 21, 2025 and sell it today you would earn a total of 57.00 from holding WisdomTree Core Laddered or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.33% |
| Values | Daily Returns |
First Trust Managed vs. WisdomTree Core Laddered
Performance |
| Timeline |
| First Trust Managed |
| WisdomTree Core Laddered |
First Trust and WisdomTree Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree Core
The main advantage of trading using opposite First Trust and WisdomTree Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, WisdomTree Core 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 Core will offset losses from the drop in WisdomTree Core's long position.| First Trust vs. First Trust NASDAQ 100 | First Trust vs. WisdomTree SmallCap Dividend | First Trust vs. iShares Consumer Discretionary | First Trust vs. iShares Cohen Steers |
| WisdomTree Core vs. WisdomTree High Income | WisdomTree Core vs. SMART Earnings Growth | WisdomTree Core vs. Wasatch International Select | WisdomTree Core vs. Sp Midcap 400 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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