Correlation Between WisdomTree and First Commonwealth
Can any of the company-specific risk be diversified away by investing in both WisdomTree and First Commonwealth 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 Commonwealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree and First Commonwealth Financial, you can compare the effects of market volatilities on WisdomTree and First Commonwealth 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 Commonwealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree and First Commonwealth.
Diversification Opportunities for WisdomTree and First Commonwealth
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WisdomTree and First is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree and First Commonwealth Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Commonwealth 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 Commonwealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Commonwealth has no effect on the direction of WisdomTree i.e., WisdomTree and First Commonwealth go up and down completely randomly.
Pair Corralation between WisdomTree and First Commonwealth
Allowing for the 90-day total investment horizon WisdomTree is expected to generate 1.28 times more return on investment than First Commonwealth. However, WisdomTree is 1.28 times more volatile than First Commonwealth Financial. It trades about 0.08 of its potential returns per unit of risk. First Commonwealth Financial is currently generating about 0.03 per unit of risk. If you would invest 940.00 in WisdomTree on October 11, 2025 and sell it today you would earn a total of 375.00 from holding WisdomTree or generate 39.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree vs. First Commonwealth Financial
Performance |
| Timeline |
| WisdomTree |
| First Commonwealth |
WisdomTree and First Commonwealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree and First Commonwealth
The main advantage of trading using opposite WisdomTree and First Commonwealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree position performs unexpectedly, First Commonwealth 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 Commonwealth will offset losses from the drop in First Commonwealth's long position.| WisdomTree vs. Acadian Asset Management | WisdomTree vs. Tri Continental Closed | WisdomTree vs. Grab Holdings | WisdomTree vs. Oxford Lane Capital |
| First Commonwealth vs. Northwest Bancshares | First Commonwealth vs. ST Bancorp | First Commonwealth vs. Stellar Bancorp | First Commonwealth vs. City Holding |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |