Correlation Between First Trust and WisdomTree Voya
Can any of the company-specific risk be diversified away by investing in both First Trust and WisdomTree Voya at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining First Trust and WisdomTree Voya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Trust Exchange Traded and WisdomTree Voya Yield, you can compare the effects of market volatilities on First Trust and WisdomTree Voya and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in First Trust with a short position of WisdomTree Voya. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Trust and WisdomTree Voya.
Diversification Opportunities for First Trust and WisdomTree Voya
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and WisdomTree is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Exchange Traded and WisdomTree Voya Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Voya Yield 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 Voya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Voya Yield has no effect on the direction of First Trust i.e., First Trust and WisdomTree Voya go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree Voya
Given the investment horizon of 90 days First Trust Exchange Traded is expected to generate 0.97 times more return on investment than WisdomTree Voya. However, First Trust Exchange Traded is 1.03 times less risky than WisdomTree Voya. It trades about 0.09 of its potential returns per unit of risk. WisdomTree Voya Yield is currently generating about 0.08 per unit of risk. If you would invest 2,102 in First Trust Exchange Traded on November 10, 2025 and sell it today you would earn a total of 22.00 from holding First Trust Exchange Traded or generate 1.05% 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 Exchange Traded vs. WisdomTree Voya Yield
Performance |
| Timeline |
| First Trust Exchange |
| WisdomTree Voya Yield |
First Trust and WisdomTree Voya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree Voya
The main advantage of trading using opposite First Trust and WisdomTree Voya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Trust position performs unexpectedly, WisdomTree Voya can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in WisdomTree Voya will offset losses from the drop in WisdomTree Voya's long position.| First Trust vs. Janus Detroit Street | First Trust vs. Freedom 100 Emerging | First Trust vs. AB Active ETFs | First Trust vs. Invesco Exchange Traded |
| WisdomTree Voya vs. First Trust Exchange Traded | WisdomTree Voya vs. Schwab Strategic Trust | WisdomTree Voya vs. First Trust Exchange Traded | WisdomTree Voya vs. Global X Funds |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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