Correlation Between WisdomTree Trust and First Trust
How much single-name risk can be diversified by combining WisdomTree Trust and First Trust LongShort? This analysis describes return linkage and the diversifiable risk of a joint position in WisdomTree Trust and First Trust LongShort.
Evaluate how WisdomTree Trust and First Trust LongShort react to market stress to decide if the pair supports your risk target. You can also test a long WisdomTree Trust and short First Trust structure to evaluate relative-value behavior. Review volatility patterns in WisdomTree Trust and First Trust. Go to your portfolio center
Diversification Opportunities for WisdomTree Trust and First Trust
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WisdomTree and First is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Trust and First Trust LongShort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust LongShort and WisdomTree 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 WisdomTree Trust 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 LongShort has no effect on the direction of WisdomTree Trust i.e., WisdomTree Trust and First Trust go up and down completely randomly.
Pair Corralation between WisdomTree Trust and First Trust
Given the investment horizon of 90 days WisdomTree Trust is expected to under-perform the First Trust. In addition to that, WisdomTree Trust is 1.93 times more volatile than First Trust LongShort. It trades about -0.06 of its total potential returns per unit of risk. First Trust LongShort is currently generating about -0.07 per unit of volatility. If you had invested $ 7,106 in First Trust LongShort on December 19, 2025 and sold it today you would have lost $ 155.00 from holding First Trust LongShort or given up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 63.33% |
| Values | Daily Returns |
WisdomTree Trust vs. First Trust LongShort
Performance |
| Timeline |
| WisdomTree Trust |
Risk-Adjusted Performance
Weak
Weak | Strong |
| First Trust LongShort |
Risk-Adjusted Performance
Weak
Weak | Strong |
WisdomTree Trust and First Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Trust and First Trust
Two-leg strategies using WisdomTree Trust and First Trust matter because the combined position can be designed to be more market-neutral. This is most useful when the two securities share economic drivers but still create room for relative-performance divergence.| WisdomTree Trust vs. Strategy Shares | WisdomTree Trust vs. Freedom Day Dividend | WisdomTree Trust vs. Franklin Templeton ETF | WisdomTree Trust vs. iShares MSCI China |
| First Trust vs. Fidelity MSCI Utilities | First Trust vs. JPMorgan Market Expansion | First Trust vs. Trust For Professional | First Trust vs. iShares ESG Aware |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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