Correlation Between WisdomTree Europe and First Trust
Can company-specific risk be reduced by holding WisdomTree Europe Hedged and First Trust IPOX together? The view summarizes correlation to explain the diversifiable risk of holding WisdomTree Europe Hedged and First Trust IPOX together.
This view explains how often WisdomTree Europe Hedged and First Trust IPOX confirm each other and when they offer offsetting moves. You can also test a long WisdomTree Europe and short First Trust structure to evaluate relative-value behavior. Review volatility patterns in WisdomTree Europe and First Trust. Go to your portfolio center
Diversification Opportunities for WisdomTree Europe and First Trust
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WisdomTree and First is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Europe Hedged and First Trust IPOX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust IPOX and WisdomTree Europe 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 Europe Hedged 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 IPOX has no effect on the direction of WisdomTree Europe i.e., WisdomTree Europe and First Trust go up and down completely randomly.
Pair Corralation between WisdomTree Europe and First Trust
Given the investment horizon of 90 days WisdomTree Europe Hedged is expected to under-perform the First Trust. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree Europe Hedged is 1.33 times less risky than First Trust. The etf trades about -0.02 of its potential returns per unit of risk. The First Trust IPOX is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you had invested $ 3,122 in First Trust IPOX on December 19, 2025 and sold it today you would have lost $ 34.00 from holding First Trust IPOX or given up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WisdomTree Europe Hedged vs. First Trust IPOX
Performance |
| Timeline |
| WisdomTree Europe Hedged |
Risk-Adjusted Performance
Weak
Weak | Strong |
| First Trust IPOX |
Risk-Adjusted Performance
Weak
Weak | Strong |
WisdomTree Europe and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Europe and First Trust
Pair trading between WisdomTree Europe and First Trust 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.| WisdomTree Europe vs. WisdomTree SmallCap Dividend | WisdomTree Europe vs. iShares Global Energy | WisdomTree Europe vs. iShares MSCI Pacific | WisdomTree Europe vs. iShares Financial Services |
| First Trust vs. First Trust Exchange Traded | First Trust vs. Virtus Duff Phelps | First Trust vs. Direxion All Cap | First Trust vs. Franklin Dividend Growth |
Go to your portfolio centerThe 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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