Correlation Between WisdomTree Efficient and First Trust

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How much single-name risk can be diversified by combining WisdomTree Efficient Gold and First Trust RBA? The view summarizes correlation to explain the diversifiable risk of holding WisdomTree Efficient Gold and First Trust RBA together.
Evaluate how WisdomTree Efficient Gold and First Trust RBA react to market stress to decide if the pair supports your risk target. You can also test a long WisdomTree Efficient and short First Trust structure to evaluate relative-value behavior. Review volatility patterns in WisdomTree Efficient and First Trust. Go to your portfolio center

Diversification Opportunities for WisdomTree Efficient and First Trust

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

Pair Corralation between WisdomTree Efficient and First Trust

Given the investment horizon of 90 days WisdomTree Efficient Gold is expected to generate 4.39 times more return on investment than First Trust. However, WisdomTree Efficient is 4.39 times more volatile than First Trust RBA. It trades about 0.08 of its potential returns per unit of risk. First Trust RBA is currently generating about -0.04 per unit of risk. If you had invested $ 9,379 in WisdomTree Efficient Gold on December 17, 2025 and sold it today you would have earned a total of $ 1,800 from holding WisdomTree Efficient Gold or generated 19.19% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy98.36%
ValuesDaily Returns

WisdomTree Efficient Gold  vs.  First Trust RBA

 Performance 
       Timeline  
WisdomTree Efficient Gold 
Risk-Adjusted Performance
Contained
 
Weak
 
Strong
Compared with the broader market, risk-adjusted returns on WisdomTree Efficient Gold rank lower than 6% of all global equities and portfolios over the last 90 days. The current category mapping is Multi-Asset Leveraged. In spite of very conflicting primary indicators, WisdomTree Efficient displayed solid returns over the last few months and may actually be approaching a breakup point. ...more
First Trust RBA 
Risk-Adjusted Performance
Weak
 
Weak
 
Strong
Over the last 90 days, First Trust RBA generated negative risk-adjusted returns and added little value for investors with long positions. Market capitalization should still be reviewed beside liquidity, leverage, and earnings quality. In spite of fairly stable forward indicators, First Trust is not utilizing all of its potential. The current price fuss may contribute to near-short-term losses for sophisticated investors. ...more

WisdomTree Efficient and First Trust Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WisdomTree Efficient and First Trust

Combining WisdomTree Efficient with First Trust in a pair setup can help isolate spread behavior from broader market movement. Used correctly, the structure can help offset losses in one leg when unexpected sector or market pressure hits both names.
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The analysis presented here should support, not replace, the broader process of selecting and combining portfolio holdings. The practical goal is to improve the mix of assets already under consideration. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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