Correlation Between WisdomTree Voya and First Trust
Can any of the company-specific risk be diversified away by investing in both WisdomTree Voya 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 Voya 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 Voya Yield and First Trust Exchange Traded, you can compare the effects of market volatilities on WisdomTree Voya 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 Voya with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Voya and First Trust.
Diversification Opportunities for WisdomTree Voya and First Trust
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and First is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Voya Yield and First Trust Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Exchange and WisdomTree Voya 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 Voya Yield 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 Exchange has no effect on the direction of WisdomTree Voya i.e., WisdomTree Voya and First Trust go up and down completely randomly.
Pair Corralation between WisdomTree Voya and First Trust
Given the investment horizon of 90 days WisdomTree Voya is expected to generate 2.28 times less return on investment than First Trust. In addition to that, WisdomTree Voya is 1.92 times more volatile than First Trust Exchange Traded. It trades about 0.06 of its total potential returns per unit of risk. First Trust Exchange Traded is currently generating about 0.25 per unit of volatility. If you would invest 1,910 in First Trust Exchange Traded on October 3, 2025 and sell it today you would earn a total of 9.00 from holding First Trust Exchange Traded or generate 0.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Voya Yield vs. First Trust Exchange Traded
Performance |
| Timeline |
| WisdomTree Voya Yield |
| First Trust Exchange |
WisdomTree Voya and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Voya and First Trust
The main advantage of trading using opposite WisdomTree Voya and First Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Voya 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 Voya vs. First Trust Exchange Traded | WisdomTree Voya vs. Schwab Strategic Trust | WisdomTree Voya vs. First Trust Exchange Traded | WisdomTree Voya vs. Global X Funds |
| First Trust vs. Global X Funds | First Trust vs. Invesco Variable Rate | First Trust vs. FlexShares Ready Access | First Trust vs. Avantis Core Fixed |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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