Correlation Between First Trust and WisdomTree New
Is diversification improved when First Trust Exchange Traded and WisdomTree New Economy appear in the same portfolio? This analysis describes return linkage and the diversifiable risk of a joint position in First Trust Exchange Traded and WisdomTree New Economy.
This screen helps map correlation drift between First Trust Exchange Traded and WisdomTree New Economy over time, not just at one snapshot. You can also test a long First Trust and short WisdomTree New structure to evaluate relative-value behavior. Review volatility patterns in First Trust and WisdomTree New. Go to your portfolio center
Diversification Opportunities for First Trust and WisdomTree New
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and WisdomTree is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Exchange Traded and WisdomTree New Economy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree New Economy and First 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 First Trust Exchange Traded are associated (or correlated) with WisdomTree New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree New Economy has no effect on the direction of First Trust i.e., First Trust and WisdomTree New go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree New
Given the investment horizon of 90 days First Trust is expected to generate 2.93 times less return on investment than WisdomTree New. But when comparing it to its historical volatility, First Trust Exchange Traded is 1.77 times less risky than WisdomTree New. It trades about 0.05 of its potential returns per unit of risk. WisdomTree New Economy is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you had invested $ 2,100 in WisdomTree New Economy on December 14, 2025 and sold it today you would have earned a total of $ 142.00 from holding WisdomTree New Economy or generated 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Exchange Traded vs. WisdomTree New Economy
Performance |
| Timeline |
| First Trust Exchange |
Risk-Adjusted Performance
Mild
Weak | Strong |
| WisdomTree New Economy |
Risk-Adjusted Performance
Contained
Weak | Strong |
First Trust and WisdomTree New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree New
A paired position in First Trust and WisdomTree New is useful when investors want a more relative-value expression than a simple directional trade. The stronger process checks whether the correlation is stable enough to justify the hedge logic before the trade is sized.| First Trust vs. First Trust Exchange Traded | First Trust vs. Northern Lights | First Trust vs. iShares Trust | First Trust vs. WisdomTree New Economy |
| WisdomTree New vs. Natixis ETF Trust | WisdomTree New vs. ALPS REIT Dividend | WisdomTree New vs. SPDR Galaxy Digital | WisdomTree New vs. Innovator ETFs Trust |
Go to your portfolio centerThe 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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