Correlation Between WisdomTree MidCap and First Trust

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Return interaction between WisdomTree MidCap Dividend and First Trust Large indicates how closely their price movements are linked. The relationship is expressed in terms of diversifiable risk within a combined setting. The value is derived from historical price or return data across available periods.
Correlation trends for WisdomTree MidCap Dividend and First Trust Large show when the pair behaves defensively and when it becomes directional. The output helps evaluate whether combining the two amplifies or reduces concentration risk. Go to your portfolio center

Diversification Opportunities for WisdomTree MidCap and First Trust

0.83
  Correlation Coefficient
Very poor diversification
The 3 months correlation between WisdomTree and First is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree MidCap Dividend and First Trust Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Large and WisdomTree MidCap 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 MidCap Dividend 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 Large has no effect on the direction of WisdomTree MidCap i.e., WisdomTree MidCap and First Trust go up and down completely randomly.

Pair Corralation between WisdomTree MidCap and First Trust

Considering the 90-day investment horizon WisdomTree MidCap Dividend is expected to under-perform the First Trust. In addition to that, WisdomTree MidCap is 1.19 times more volatile than First Trust Large. It trades about -0.03 of its total potential returns per unit of risk. First Trust Large is currently generating about 0.1 per unit of volatility. If you had invested $ 8,646 in First Trust Large on December 23, 2025 and sold it today you would have earned a total of $ 374.00 from holding First Trust Large or generated 4.33% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

WisdomTree MidCap Dividend  vs.  First Trust Large

 Performance 
       Timeline  
WisdomTree MidCap 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, WisdomTree MidCap Dividend generated negative risk-adjusted returns and added little value for investors with long positions. The current category mapping is Mid-Cap Value. In spite of very healthy basic indicators, WisdomTree MidCap is not utilizing all of its potential. The latest price disarray may contribute to short-term losses for investors. ...more
First Trust Large 
Risk-Adjusted Performance
Moderate
 
Weak
 
Strong
Across the last 90 days, the risk-adjusted return profile of First Trust Large is weaker than 7% of the global equities and portfolios reviewed by Macroaxis. Market capitalization should still be reviewed beside liquidity, leverage, and earnings quality. Despite somewhat strong basic indicators, First Trust is not utilizing all of its potential. The recent price disturbance may contribute to short-term losses for investors. ...more

WisdomTree MidCap and First Trust Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree MidCap and First Trust

Pair trading between WisdomTree MidCap and First Trust can reduce some unsystematic risk by balancing one position against another. A pair setup only works when both legs are monitored with the same discipline as a stand-alone position.
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The information on this page should be treated as a complementary input when building or adjusting a diversified portfolio. The stronger workflow is to validate these signals with other models before acting. You can also try the Pattern Recognition module to use different Pattern Recognition models to identify potential trend changes across multiple global exchanges.

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