Correlation Between First Trust and WisdomTree Europe
How much single-name risk can be diversified by combining First Trust RiverFront and WisdomTree Europe Hedged? Correlation context here helps quantify the diversifiable risk between First Trust RiverFront and WisdomTree Europe Hedged.
Correlation here is practical: it shows whether First Trust RiverFront and WisdomTree Europe Hedged can balance each other inside one portfolio. You can also test a long First Trust and short WisdomTree Europe structure to evaluate relative-value behavior. Review volatility patterns in First Trust and WisdomTree Europe. Go to your portfolio center
Diversification Opportunities for First Trust and WisdomTree Europe
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and WisdomTree is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding First Trust RiverFront and WisdomTree Europe Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Europe Hedged 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 Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Europe Hedged has no effect on the direction of First Trust i.e., First Trust and WisdomTree Europe go up and down completely randomly.
Pair Corralation between First Trust and WisdomTree Europe
Given the investment horizon of 90 days First Trust RiverFront is expected to generate 1.08 times more return on investment than WisdomTree Europe. However, First Trust is 1.08 times more volatile than WisdomTree Europe Hedged. It trades about 0.09 of its potential returns per unit of risk. WisdomTree Europe Hedged is currently generating about 0.04 per unit of risk. If you had invested $ 7,892 in First Trust RiverFront on December 17, 2025 and sold it today you would have earned a total of $ 394.00 from holding First Trust RiverFront or generated 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.36% |
| Values | Daily Returns |
First Trust RiverFront vs. WisdomTree Europe Hedged
Performance |
| Timeline |
| First Trust RiverFront |
Risk-Adjusted Performance
Contained
Weak | Strong |
| WisdomTree Europe Hedged |
Risk-Adjusted Performance
Soft
Weak | Strong |
First Trust and WisdomTree Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Trust and WisdomTree Europe
Combining First Trust with WisdomTree Europe in a pair setup can help isolate spread behavior from broader market movement. The objective is to profit from relative movement while reducing dependence on the market's overall direction.| 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 Europe vs. WisdomTree SmallCap Dividend | WisdomTree Europe vs. iShares Global Energy | WisdomTree Europe vs. iShares MSCI Pacific | WisdomTree Europe vs. iShares Financial Services |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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