Correlation Between First Trust and WisdomTree International
Can company-specific risk be reduced by holding First Trust Exchange Traded and WisdomTree International Al together? This analysis describes return linkage and the diversifiable risk of a joint position in First Trust Exchange Traded and WisdomTree International Al.
Measure interaction between First Trust Exchange Traded and WisdomTree International Al before allocating capital to both in the same strategy. You can also test a long First Trust and short WisdomTree International structure to evaluate relative-value behavior. Review volatility patterns in First Trust and WisdomTree International. Go to your portfolio center
Diversification Opportunities for First Trust and WisdomTree International
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 Exchange Traded and WisdomTree International Al in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of First Trust i.e., First Trust and WisdomTree International go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree International
Given the investment horizon of 90 days First Trust Exchange Traded is expected to generate 2.32 times more return on investment than WisdomTree International. However, First Trust is 2.32 times more volatile than WisdomTree International Al. It trades about 0.14 of its potential returns per unit of risk. WisdomTree International Al is currently generating about 0.09 per unit of risk. If you had invested $ 3,179 in First Trust Exchange Traded on December 13, 2025 and sold it today you would have earned a total of $ 547.00 from holding First Trust Exchange Traded or generated 17.21% 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 International Al
Performance |
| Timeline |
| First Trust Exchange |
Risk-Adjusted Performance
Balanced
Weak | Strong |
| WisdomTree International |
Risk-Adjusted Performance
Moderate
Weak | Strong |
First Trust and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree International
A paired position in First Trust and WisdomTree International 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. Xtrackers FTSE Developed | First Trust vs. American Century ETF | First Trust vs. Absolute Shares Trust | First Trust vs. The 2023 ETF |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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