Correlation Between First Trust and WisdomTree High
Can any of the company-specific risk be diversified away by investing in both First Trust 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 First Trust and WisdomTree High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Large and WisdomTree High Dividend, you can compare the effects of market volatilities on First Trust 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 First Trust with a short position of WisdomTree High. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and WisdomTree High.
Diversification Opportunities for First Trust and WisdomTree High
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between First and WisdomTree is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Large and WisdomTree High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree High Dividend 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 Large 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 Dividend has no effect on the direction of First Trust i.e., First Trust and WisdomTree High go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree High
Considering the 90-day investment horizon First Trust Large is expected to generate 1.78 times more return on investment than WisdomTree High. However, First Trust is 1.78 times more volatile than WisdomTree High Dividend. It trades about 0.1 of its potential returns per unit of risk. WisdomTree High Dividend is currently generating about 0.01 per unit of risk. If you would invest 15,984 in First Trust Large on September 28, 2025 and sell it today you would earn a total of 311.00 from holding First Trust Large or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Large vs. WisdomTree High Dividend
Performance |
| Timeline |
| First Trust Large |
| WisdomTree High Dividend |
First Trust and WisdomTree High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree High
The main advantage of trading using opposite First Trust and WisdomTree High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust 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.| First Trust vs. VanEck Social Sentiment | First Trust vs. The Alger ETF | First Trust vs. Cabana Target Leading | First Trust vs. TrueShares Structured Outcome |
| WisdomTree High vs. WisdomTree Earnings 500 | WisdomTree High vs. Pacer Developed Markets | WisdomTree High vs. iShares Consumer Staples | WisdomTree High vs. iShares MSCI Switzerland |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |