First Trust Correlations

FAN Etf

USD 15.75 0.15 0.94%

The current 90-days correlation between First Trust Global and Invesco Global Clean is 0.82 (i.e., Very poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Trust moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Trust Global moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

First Trust Correlation With Market

Good diversification

The correlation between First Trust Global and DJI is -0.05 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Global 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 Global. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in nation.

Moving together with First Etf

0.68	ICLN	iShares Global Clean	Pair Corr
0.73	BABX	GraniteShares 175x Long	Pair Corr
0.65	GDXU	MicroSectors Gold Miners	Pair Corr
0.79	XPP	ProShares Ultra FTSE	Pair Corr

Moving against First Etf

0.7	MSOS	AdvisorShares Pure	Pair Corr
0.7	MJ	Amplify ETF Trust	Pair Corr
0.69	IPAY	Amplify ETF Trust	Pair Corr
0.62	QCLN	First Trust NASDAQ	Pair Corr
0.58	ACES	ALPS Clean Energy	Pair Corr
0.56	BOTZ	Global X Robotics	Pair Corr
0.52	CAT	Caterpillar	Pair Corr
0.32	TAN	Invesco Solar ETF	Pair Corr
0.66	HD	Home Depot	Pair Corr
0.58	DIS	Walt Disney	Pair Corr
0.56	JPM	JPMorgan Chase	Pair Corr
0.52	HPQ	HP Inc	Pair Corr
0.46	WMT	Walmart	Pair Corr
0.31	PFE	Pfizer Inc	Pair Corr

Related Correlations Analysis

	PBD	TAN	QCLN	PBW	ICLN
PBD		0.73	0.65	0.68	0.59	PBD
TAN	0.73		0.79	0.79	0.26	TAN
QCLN	0.65	0.79		0.99	-0.01	QCLN
PBW	0.68	0.79	0.99		0.03	PBW
ICLN	0.59	0.26	-0.01	0.03		ICLN
	PBD	TAN	QCLN	PBW	ICLN

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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

PBW	+ 0.99	QCLN
QCLN	+ 0.79	TAN
PBW	+ 0.79	TAN
TAN	+ 0.73	PBD
PBW	+ 0.68	PBD
QCLN	+ 0.65	PBD

High negative correlations

ICLN

- 0.01

QCLN

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
PBD	1.30	(0.04)	0.00	0.57	0.00	0.00	2.44	(2.71)	6.19
TAN	1.59	(0.08)	0.00	(1.89)	0.00	0.00	2.95	(3.29)	8.81
QCLN	1.52	(0.27)	0.00	1.57	0.00	0.00	2.25	(3.03)	9.45
PBW	2.01	(0.26)	0.00	2.26	0.00	0.00	3.19	(4.02)	11.53
ICLN	0.90	0.01	0.06	(0.15)	1.20	(0.94)	1.78	(2.45)	4.96

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