Correlation Between WisdomTree International and First Trust
Can any of the company-specific risk be diversified away by investing in both WisdomTree International and First Trust 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 WisdomTree International and First Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree International Efficient and First Trust, you can compare the effects of market volatilities on WisdomTree International and First Trust 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 WisdomTree International with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree International and First Trust.
Diversification Opportunities for WisdomTree International and First Trust
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and First is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree International Effic and First Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust and WisdomTree International 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 WisdomTree International Efficient are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust has no effect on the direction of WisdomTree International i.e., WisdomTree International and First Trust go up and down completely randomly.
Pair Corralation between WisdomTree International and First Trust
If you would invest 4,337 in WisdomTree International Efficient on December 4, 2025 and sell it today you would earn a total of 240.00 from holding WisdomTree International Efficient or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 1.67% |
| Values | Daily Returns |
WisdomTree International Effic vs. First Trust
Performance |
| Timeline |
| WisdomTree International |
| First Trust |
Risk-Adjusted Performance
Weakest
Weak | Strong |
WisdomTree International and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree International and First Trust
The main advantage of trading using opposite WisdomTree International and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree International position performs unexpectedly, First Trust 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 First Trust will offset losses from the drop in First Trust's long position.| WisdomTree International vs. 6 Meridian Mega | WisdomTree International vs. iShares MSCI Poland | WisdomTree International vs. Xtrackers MSCI Japan | WisdomTree International vs. American Century Quality |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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