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 Growth, 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
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between WisdomTree and First is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Voya Yield and First Trust Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Growth 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 Growth 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 1.86 times less return on investment than First Trust. But when comparing it to its historical volatility, WisdomTree Voya Yield is 4.13 times less risky than First Trust. It trades about 0.09 of its potential returns per unit of risk. First Trust Growth is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,001 in First Trust Growth on October 2, 2025 and sell it today you would earn a total of 537.00 from holding First Trust Growth or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Voya Yield vs. First Trust Growth
Performance |
| Timeline |
| WisdomTree Voya Yield |
| First Trust Growth |
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. Nuveen Mortgage Opportunity | WisdomTree Voya vs. American Beacon Balanced | WisdomTree Voya vs. Voya Emerging Markets | WisdomTree Voya vs. T Rowe Price |
| First Trust vs. Vanguard Russell 2000 | First Trust vs. Direxion NASDAQ 100 Equal | First Trust vs. Kovitz Core Equity | First Trust vs. Pacer Funds Trust |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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