Correlation Between First Trust and WisdomTree 9060

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Can company-specific risk be reduced by holding First Trust Small and WisdomTree 9060 Balanced together? This module highlights the diversifiable risk of combining First Trust Small and WisdomTree 9060 Balanced and frames portfolio overlap.
Use this comparison to see whether First Trust Small and WisdomTree 9060 Balanced tend to move together or diverge across regimes. You can also test a long First Trust and short WisdomTree 9060 structure to evaluate relative-value behavior. Review volatility patterns in First Trust and WisdomTree 9060. Go to your portfolio center

Diversification Opportunities for First Trust and WisdomTree 9060

0.23
  Correlation Coefficient

Modest diversification

The 3 months correlation between First and WisdomTree is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Small and WisdomTree 9060 Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree 9060 Balanced 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 Small are associated (or correlated) with WisdomTree 9060. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree 9060 Balanced has no effect on the direction of First Trust i.e., First Trust and WisdomTree 9060 go up and down completely randomly.

Pair Corralation between First Trust and WisdomTree 9060

Considering the 90-day investment horizon First Trust Small is expected to generate 1.48 times more return on investment than WisdomTree 9060. However, First Trust is 1.48 times more volatile than WisdomTree 9060 Balanced. It trades about 0.03 of its potential returns per unit of risk. WisdomTree 9060 Balanced is currently generating about -0.03 per unit of risk. If you had invested $ 11,741 in First Trust Small on December 11, 2025 and sold it today you would have earned a total of $ 155.00 from holding First Trust Small or generated 1.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

First Trust Small  vs.  WisdomTree 9060 Balanced

 Performance 
       Timeline  
First Trust Small 
Risk-Adjusted Performance
Soft
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on First Trust Small rank lower than 2% of all global equities and portfolios over the last 90 days. This score becomes more useful when investors compare it with downside risk, Sharpe Ratio, and current trend stability. Despite somewhat strong basic indicators, First Trust is not utilizing all of its potential. The latest price disturbance may contribute to short-term losses for investors. ...more
WisdomTree 9060 Balanced 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, WisdomTree 9060 Balanced generated negative risk-adjusted returns and added little value for investors with long positions. The result matters because weak risk-adjusted return can persist even when isolated price moves briefly look constructive. Despite somewhat strong basic indicators, WisdomTree 9060 is not utilizing all of its potential. The latest price disturbance may contribute to short-term losses for investors. ...more

First Trust and WisdomTree 9060 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with First Trust and WisdomTree 9060

A paired position in First Trust and WisdomTree 9060 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.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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