Correlation Between FT Vest and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both FT Vest and WisdomTree International 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 FT Vest and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FT Vest Equity and WisdomTree International Multifactor, you can compare the effects of market volatilities on FT Vest and WisdomTree International 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 FT Vest with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of FT Vest and WisdomTree International.
Diversification Opportunities for FT Vest and WisdomTree International
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between DHDG and WisdomTree is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding FT Vest Equity and WisdomTree International Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and FT Vest 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 FT Vest Equity are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of FT Vest i.e., FT Vest and WisdomTree International go up and down completely randomly.
Pair Corralation between FT Vest and WisdomTree International
Given the investment horizon of 90 days FT Vest is expected to generate 4.8 times less return on investment than WisdomTree International. But when comparing it to its historical volatility, FT Vest Equity is 1.27 times less risky than WisdomTree International. It trades about 0.11 of its potential returns per unit of risk. WisdomTree International Multifactor is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 3,128 in WisdomTree International Multifactor on May 27, 2025 and sell it today you would earn a total of 140.00 from holding WisdomTree International Multifactor or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FT Vest Equity vs. WisdomTree International Multi
Performance |
| Timeline |
| FT Vest Equity |
| WisdomTree International |
FT Vest and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FT Vest and WisdomTree International
The main advantage of trading using opposite FT Vest and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FT Vest position performs unexpectedly, WisdomTree International 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 WisdomTree International will offset losses from the drop in WisdomTree International's long position.| FT Vest vs. Northern Lights | FT Vest vs. Dimensional International High | FT Vest vs. JPMorgan Fundamental Data | FT Vest vs. Davis Select International |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |