First Trust Correlations

EDOW Etf

USD 35.58 0.36 1.00%

The current 90-days correlation between First Trust Dow and Invesco SP 100 is 0.09 (i.e., Significant 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

Good diversification

The correlation between First Trust Dow and DJI is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Dow 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 Dow. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in persons.

Moving together with First Etf

0.67	VTV	Vanguard Value Index	Pair Corr
0.63	VYM	Vanguard High Dividend	Pair Corr
0.62	IWD	iShares Russell 1000	Pair Corr
0.63	DGRO	iShares Core Dividend	Pair Corr
0.66	DVY	iShares Select Dividend	Pair Corr
0.67	FVD	First Trust Value	Pair Corr
0.63	GE	GE Aerospace	Pair Corr
0.78	WMT	Walmart	Pair Corr
0.72	JPM	JPMorgan Chase	Pair Corr

Moving against First Etf

0.33	WTID	UBS ETRACS	Pair Corr
0.52	MRK	Merck Company	Pair Corr

Related Correlations Analysis

	EQWL	HUSV	ERM	EWMC	EQAL
EQWL		0.59	0.0	0.0	0.32	EQWL
HUSV	0.59		0.0	0.0	0.18	HUSV
ERM	0.0	0.0		0.0	0.0	ERM
EWMC	0.0	0.0	0.0		0.0	EWMC
EQAL	0.32	0.18	0.0	0.0		EQAL
	EQWL	HUSV	ERM	EWMC	EQAL

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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

HUSV	+ 0.59	EQWL
EQAL	+ 0.32	EQWL
EQAL	+ 0.18	HUSV
ERM	+ 0.0	EQWL
EWMC	+ 0.0	EQWL
ERM	+ 0.0	HUSV

High negative correlations

EQAL	- 0.0	EWMC
EQAL	- 0.0	ERM
EWMC	- 0.0	ERM
EWMC	- 0.0	HUSV
ERM	- 0.0	HUSV
EWMC	- 0.0	EQWL

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	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
EQWL	0.65	0.04	(0.09)	1.18	(1.62)	3.55
HUSV	0.54	(0.03)	0.15	0.93	(1.32)	3.02
ERM	0.00	0.00	0.00	0.00	0.00	0.00
EWMC	0.00	0.00	0.00	0.00	0.00	0.00
EQAL	0.64	(0.16)	1.71	1.09	(1.60)	3.54

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