Correlation Between WisdomTree and First Trust
Can any of the company-specific risk be diversified away by investing in both WisdomTree 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 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 and First Trust Dividend, you can compare the effects of market volatilities on WisdomTree 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 with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and First Trust.
Diversification Opportunities for WisdomTree and First Trust
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WisdomTree and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree and First Trust Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Dividend and WisdomTree 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 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 Dividend has no effect on the direction of WisdomTree i.e., WisdomTree and First Trust go up and down completely randomly.
Pair Corralation between WisdomTree and First Trust
If you would invest 5,354 in First Trust Dividend on November 20, 2025 and sell it today you would earn a total of 874.00 from holding First Trust Dividend or generate 16.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
WisdomTree vs. First Trust Dividend
Performance |
| Timeline |
| WisdomTree |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| First Trust Dividend |
WisdomTree and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree and First Trust
The main advantage of trading using opposite WisdomTree and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree 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 vs. ProShares Equities for | WisdomTree vs. Allspring Exchange Traded Funds | WisdomTree vs. iShares Environmentally Aware | WisdomTree vs. WHITEWOLF Publicly Listed |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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