Correlation Between First Trust and WisdomTree 9060
Can any of the company-specific risk be diversified away by investing in both First Trust and WisdomTree 9060 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 9060 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Technology and WisdomTree 9060 Balanced, you can compare the effects of market volatilities on First Trust and WisdomTree 9060 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 9060. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and WisdomTree 9060.
Diversification Opportunities for First Trust and WisdomTree 9060
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and WisdomTree is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Technology and WisdomTree 9060 Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree 9060 Balanced 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 Technology are associated (or correlated) with WisdomTree 9060. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree 9060 Balanced has no effect on the direction of First Trust i.e., First Trust and WisdomTree 9060 go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree 9060
Considering the 90-day investment horizon First Trust is expected to generate 1.07 times less return on investment than WisdomTree 9060. In addition to that, First Trust is 1.54 times more volatile than WisdomTree 9060 Balanced. It trades about 0.05 of its total potential returns per unit of risk. WisdomTree 9060 Balanced is currently generating about 0.08 per unit of volatility. If you would invest 3,834 in WisdomTree 9060 Balanced on September 29, 2025 and sell it today you would earn a total of 1,729 from holding WisdomTree 9060 Balanced or generate 45.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Technology vs. WisdomTree 9060 Balanced
Performance |
| Timeline |
| First Trust Technology |
| WisdomTree 9060 Balanced |
First Trust and WisdomTree 9060 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree 9060
The main advantage of trading using opposite First Trust and WisdomTree 9060 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, WisdomTree 9060 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 9060 will offset losses from the drop in WisdomTree 9060's long position.| First Trust vs. First Trust Utilities | First Trust vs. First Trust Large | First Trust vs. First Trust IndustrialsProducer | First Trust vs. First Trust Large |
| WisdomTree 9060 vs. Pacer Funds Trust | WisdomTree 9060 vs. WisdomTree Earnings 500 | WisdomTree 9060 vs. Goldman Sachs MarketBeta | WisdomTree 9060 vs. Vanguard Russell 2000 |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |