Correlation Between WisdomTree Trust and FT Cboe
Can any of the company-specific risk be diversified away by investing in both WisdomTree Trust and FT Cboe 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 Trust and FT Cboe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Trust and FT Cboe Vest, you can compare the effects of market volatilities on WisdomTree Trust and FT Cboe 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 Trust with a short position of FT Cboe. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Trust and FT Cboe.
Diversification Opportunities for WisdomTree Trust and FT Cboe
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between WisdomTree and DFEB is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Trust and FT Cboe Vest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Cboe Vest and WisdomTree Trust 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 Trust are associated (or correlated) with FT Cboe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Cboe Vest has no effect on the direction of WisdomTree Trust i.e., WisdomTree Trust and FT Cboe go up and down completely randomly.
Pair Corralation between WisdomTree Trust and FT Cboe
Given the investment horizon of 90 days WisdomTree Trust is expected to generate 3.98 times more return on investment than FT Cboe. However, WisdomTree Trust is 3.98 times more volatile than FT Cboe Vest. It trades about 0.06 of its potential returns per unit of risk. FT Cboe Vest is currently generating about 0.1 per unit of risk. If you would invest 2,023 in WisdomTree Trust on October 14, 2025 and sell it today you would earn a total of 1,013 from holding WisdomTree Trust or generate 50.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Trust vs. FT Cboe Vest
Performance |
| Timeline |
| WisdomTree Trust |
| FT Cboe Vest |
WisdomTree Trust and FT Cboe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Trust and FT Cboe
The main advantage of trading using opposite WisdomTree Trust and FT Cboe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Trust position performs unexpectedly, FT Cboe 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 FT Cboe will offset losses from the drop in FT Cboe's long position.| WisdomTree Trust vs. Invesco QQQ Income | WisdomTree Trust vs. Alpskotak India Growth | WisdomTree Trust vs. Adaptive Alpha Opportunities | WisdomTree Trust vs. AIM ETF Products |
| FT Cboe vs. FT Cboe Vest | FT Cboe vs. FT Cboe Vest | FT Cboe vs. First Trust Exchange Traded | FT Cboe vs. FT Cboe Vest |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |