Correlation Between First Trust and WisdomTree Europe
Does pairing First Trust United with WisdomTree Europe Quality lower idiosyncratic risk? The view summarizes correlation to explain the diversifiable risk of holding First Trust United and WisdomTree Europe Quality together.
Evaluate how First Trust United and WisdomTree Europe Quality react to market stress to decide if the pair supports your risk target. 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
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and WisdomTree is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding First Trust United 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 United 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 United is expected to generate 1.29 times more return on investment than WisdomTree Europe. However, First Trust is 1.29 times more volatile than WisdomTree Europe Quality. It trades about 0.05 of its potential returns per unit of risk. WisdomTree Europe Quality is currently generating about -0.02 per unit of risk. If you had invested $ 4,898 in First Trust United on December 15, 2025 and sold it today you would have earned a total of $ 167.00 from holding First Trust United or generated 3.41% 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 United vs. WisdomTree Europe Quality
Performance |
| Timeline |
| First Trust United |
Risk-Adjusted Performance
Mild
Weak | Strong |
| WisdomTree Europe Quality |
Risk-Adjusted Performance
Weak
Weak | Strong |
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 Germany | First Trust vs. First Trust China | First Trust vs. First Trust Switzerland | 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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