First Trust Correlations

DDIV Etf

USD 37.67 0.19 0.50%

The current 90-days correlation between First Trust RBA and First Trust Dorsey is -0.03 (i.e., Good diversification). The correlation of First Trust is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

First Trust Correlation With Market

Poor diversification

The correlation between First Trust RBA and DJI is 0.71 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust RBA and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Trust RBA. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

Moving together with First Etf

0.78	VOE	Vanguard Mid Cap	Pair Corr
0.81	IWS	iShares Russell Mid	Pair Corr
0.87	COWZ	Pacer Cash Cows	Pair Corr
0.76	DON	WisdomTree MidCap	Pair Corr
0.68	RPV	Invesco SP 500	Pair Corr
0.84	PKW	Invesco BuyBack Achievers	Pair Corr
0.88	ONEY	SPDR Russell 1000	Pair Corr
0.81	ITDD	iShares Trust	Pair Corr
0.85	BAC	Bank of America Sell-off Trend	Pair Corr
0.9	JPM	JPMorgan Chase	Pair Corr
0.85	AXP	American Express Sell-off Trend	Pair Corr

Moving against First Etf

0.36

MRK

Merck Company

Pair Corr

Related Correlations Analysis

	DVOL	DVLU	DALI	RNDV	RNLC
DVOL		0.61	0.37	0.78	0.0	DVOL
DVLU	0.61		0.93	0.67	0.0	DVLU
DALI	0.37	0.93		0.53	0.0	DALI
RNDV	0.78	0.67	0.53		0.0	RNDV
RNLC	0.0	0.0	0.0	0.0		RNLC
	DVOL	DVLU	DALI	RNDV	RNLC

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

DALI	+ 0.93	DVLU
RNDV	+ 0.78	DVOL
RNDV	+ 0.67	DVLU
DVLU	+ 0.61	DVOL
RNDV	+ 0.53	DALI
DALI	+ 0.37	DVOL

High negative correlations

RNLC	- 0.0	RNDV
RNLC	- 0.0	DALI
RNLC	- 0.0	DVLU
RNLC	- 0.0	DVOL

First Trust Constituents Risk-Adjusted Indicators

There is a big difference between First Etf performing well and First Trust ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze First Trust's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
DVOL	0.70	(0.01)	0.08	0.01	0.87	(0.75)	1.47	(1.32)	4.15
DVLU	0.95	(0.12)	0.00	2.70	0.00	0.00	1.71	(2.64)	5.37
DALI	0.99	(0.17)	0.00	0.99	0.00	0.00	1.53	(2.70)	5.30
RNDV	0.71	(0.01)	0.00	(0.08)	0.00	0.00	1.27	(1.53)	3.97
RNLC	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

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