Correlation Between First Trust and WisdomTree Europe
Can company-specific risk be reduced by holding First Trust Germany and WisdomTree Europe Quality together? Use this page to interpret how First Trust Germany and WisdomTree Europe Quality interact and how much diversifiable risk remains.
Cross-correlation between First Trust Germany and WisdomTree Europe Quality helps estimate portfolio overlap before combining both positions. You can also test a long First Trust and short WisdomTree Europe structure to evaluate relative-value behavior. Review volatility patterns in First Trust and WisdomTree Europe. Go to your portfolio center
Diversification Opportunities for First Trust and WisdomTree Europe
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and WisdomTree is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Germany and WisdomTree Europe Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Europe Quality 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 Germany are associated (or correlated) with WisdomTree Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Europe Quality has no effect on the direction of First Trust i.e., First Trust and WisdomTree Europe go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree Europe
Considering the 90-day investment horizon First Trust is expected to generate 1.84 times less return on investment than WisdomTree Europe. In addition to that, First Trust is 1.5 times more volatile than WisdomTree Europe Quality. It trades about 0.02 of its total potential returns per unit of risk. WisdomTree Europe Quality is currently generating about 0.06 per unit of volatility. If you would invest 3,667 in WisdomTree Europe Quality on December 10, 2025 and sell it today you would earn a total of 107.00 from holding WisdomTree Europe Quality or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust Germany vs. WisdomTree Europe Quality
Performance |
| Timeline |
| First Trust Germany |
| WisdomTree Europe Quality |
First Trust and WisdomTree Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree Europe
A paired position in First Trust and WisdomTree Europe 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 United | First Trust vs. First Trust Switzerland | First Trust vs. First Trust China | First Trust vs. First Trust Eurozone |
| WisdomTree Europe vs. First Trust Switzerland | WisdomTree Europe vs. Morgan Stanley ETF | WisdomTree Europe vs. Franklin FTSE Australia | WisdomTree Europe vs. Roundhill Sports Betting |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |