Correlation Between First Trust and WisdomTree BioRevolution
Can any of the company-specific risk be diversified away by investing in both First Trust and WisdomTree BioRevolution 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 BioRevolution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Exchange Traded and WisdomTree BioRevolution, you can compare the effects of market volatilities on First Trust and WisdomTree BioRevolution 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 BioRevolution. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and WisdomTree BioRevolution.
Diversification Opportunities for First Trust and WisdomTree BioRevolution
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between First and WisdomTree is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Exchange Traded and WisdomTree BioRevolution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree BioRevolution 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 Exchange Traded are associated (or correlated) with WisdomTree BioRevolution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree BioRevolution has no effect on the direction of First Trust i.e., First Trust and WisdomTree BioRevolution go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree BioRevolution
Given the investment horizon of 90 days First Trust Exchange Traded is expected to under-perform the WisdomTree BioRevolution. But the etf apears to be less risky and, when comparing its historical volatility, First Trust Exchange Traded is 1.77 times less risky than WisdomTree BioRevolution. The etf trades about -0.02 of its potential returns per unit of risk. The WisdomTree BioRevolution is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,587 in WisdomTree BioRevolution on November 21, 2025 and sell it today you would earn a total of 218.00 from holding WisdomTree BioRevolution or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Exchange Traded vs. WisdomTree BioRevolution
Performance |
| Timeline |
| First Trust Exchange |
| WisdomTree BioRevolution |
First Trust and WisdomTree BioRevolution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree BioRevolution
The main advantage of trading using opposite First Trust and WisdomTree BioRevolution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, WisdomTree BioRevolution 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 BioRevolution will offset losses from the drop in WisdomTree BioRevolution's long position.| First Trust vs. Themes Cybersecurity ETF | First Trust vs. Global X Funds | First Trust vs. FT Vest Growth | First Trust vs. KraneShares Trust |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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