Correlation Between First Trust and WisdomTree Emerging
Can company-specific risk be reduced by holding First Trust RiverFront and WisdomTree Emerging Markets together? The view summarizes correlation to explain the diversifiable risk of holding First Trust RiverFront and WisdomTree Emerging Markets together.
Study First Trust RiverFront and WisdomTree Emerging Markets side by side to support cleaner diversification and timing decisions. You can also test a long First Trust and short WisdomTree Emerging structure to evaluate relative-value behavior. Review volatility patterns in First Trust and WisdomTree Emerging. Go to your portfolio center
Diversification Opportunities for First Trust and WisdomTree Emerging
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and WisdomTree is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding First Trust RiverFront and WisdomTree Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Emerging 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 RiverFront are associated (or correlated) with WisdomTree Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Emerging has no effect on the direction of First Trust i.e., First Trust and WisdomTree Emerging go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree Emerging
Given the investment horizon of 90 days First Trust is expected to generate 1.74 times less return on investment than WisdomTree Emerging. But when comparing it to its historical volatility, First Trust RiverFront is 1.1 times less risky than WisdomTree Emerging. It trades about 0.09 of its potential returns per unit of risk. WisdomTree Emerging Markets is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you had invested $ 3,132 in WisdomTree Emerging Markets on December 11, 2025 and sold it today you would have earned a total of $ 275.00 from holding WisdomTree Emerging Markets or generated 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Trust RiverFront vs. WisdomTree Emerging Markets
Performance |
| Timeline |
| First Trust RiverFront |
Risk-Adjusted Performance
Moderate
Weak | Strong |
| WisdomTree Emerging |
Risk-Adjusted Performance
Moderate
Weak | Strong |
First Trust and WisdomTree Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree Emerging
A paired position in First Trust and WisdomTree Emerging 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. Avantis International Small | First Trust vs. Goldman Sachs MarketBeta | First Trust vs. WisdomTree Emerging Markets | First Trust vs. WisdomTree Emerging Markets |
| WisdomTree Emerging vs. WisdomTree Emerging Markets | WisdomTree Emerging vs. Goldman Sachs MarketBeta | WisdomTree Emerging vs. First Trust RiverFront | WisdomTree Emerging vs. EA Series Trust |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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