Correlation Between First Trust and WisdomTree Europe

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Return interaction between First Trust Switzerland and WisdomTree Europe Quality 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 First Trust Switzerland and WisdomTree Europe Quality show when the pair behaves defensively and when it becomes directional. The interaction is relevant when allocating capital to both in the same strategy. A long First Trust and short WisdomTree Europe setup can be tested to assess relative-value dynamics. Go to your portfolio center

Diversification Opportunities for First Trust and WisdomTree Europe

0.92
  Correlation Coefficient
Minimal diversification benefit
The 3 months correlation between First and WisdomTree is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Switzerland 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 Switzerland 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 Switzerland is expected to generate 0.86 times more return on investment than WisdomTree Europe. However, First Trust Switzerland is 1.16 times less risky than WisdomTree Europe. It trades about -0.04 of its potential returns per unit of risk. WisdomTree Europe Quality is currently generating about -0.06 per unit of risk. If you had invested $ 8,087 in First Trust Switzerland on December 24, 2025 and sold it today you would have lost $ 182.00 from holding First Trust Switzerland or given up 2.25% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

First Trust Switzerland  vs.  WisdomTree Europe Quality

 Performance 
       Timeline  
First Trust Switzerland 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
First Trust Switzerland has delivered negative risk-adjusted returns across the last 90 days, suggesting that volatility was not compensated by return. 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 current price disturbance may contribute to short-term losses for investors. ...more
WisdomTree Europe Quality 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, WisdomTree Europe Quality generated negative risk-adjusted returns and added little value for investors with long positions. This reading is usually reviewed beside volatility, downside risk, and benchmark-relative behavior before conviction is increased. Despite nearly stable fundamental indicators, WisdomTree Europe is not utilizing all of its potential. The latest price disturbance may contribute to mid-run losses for stockholders. ...more

First Trust and WisdomTree Europe Volatility Contrast

   Predicted Return Distribution   
       Density  

Pair Trading with First Trust and WisdomTree Europe

Pair trading between First Trust and WisdomTree Europe 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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