Correlation Between First Trust and WisdomTree Voya
Can any of the company-specific risk be diversified away by investing in both First Trust and WisdomTree Voya 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 Voya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Growth and WisdomTree Voya Yield, you can compare the effects of market volatilities on First Trust and WisdomTree Voya 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 Voya. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and WisdomTree Voya.
Diversification Opportunities for First Trust and WisdomTree Voya
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and WisdomTree is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Growth and WisdomTree Voya Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Voya Yield 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 Growth are associated (or correlated) with WisdomTree Voya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Voya Yield has no effect on the direction of First Trust i.e., First Trust and WisdomTree Voya go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree Voya
Given the investment horizon of 90 days First Trust Growth is expected to generate 4.13 times more return on investment than WisdomTree Voya. However, First Trust is 4.13 times more volatile than WisdomTree Voya Yield. It trades about 0.04 of its potential returns per unit of risk. WisdomTree Voya Yield is currently generating about 0.09 per unit of risk. If you would invest 3,001 in First Trust Growth on October 2, 2025 and sell it today you would earn a total of 537.00 from holding First Trust Growth or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Growth vs. WisdomTree Voya Yield
Performance |
| Timeline |
| First Trust Growth |
| WisdomTree Voya Yield |
First Trust and WisdomTree Voya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree Voya
The main advantage of trading using opposite First Trust and WisdomTree Voya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, WisdomTree Voya 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 Voya will offset losses from the drop in WisdomTree Voya's long position.| First Trust vs. Vanguard Russell 2000 | First Trust vs. Direxion NASDAQ 100 Equal | First Trust vs. Kovitz Core Equity | First Trust vs. Pacer Funds Trust |
| WisdomTree Voya vs. Nuveen Mortgage Opportunity | WisdomTree Voya vs. American Beacon Balanced | WisdomTree Voya vs. Voya Emerging Markets | WisdomTree Voya vs. T Rowe Price |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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