First Trust Correlations

FDHIX Fund  USD 17.89  0.02  0.11%   
The current 90-days correlation between First Trust Short and Blackrock Health Sciences is 0.35 (i.e., Weak 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

Very weak diversification

The correlation between First Trust Short and DJI is 0.41 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Short 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 Short. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

Moving together with First Mutual Fund

  0.71CWAIX First Trust ManagedPairCorr
  0.63FTMAX Franklin TempletonPairCorr
  0.99FDHCX First Trust ShortPairCorr
  1.0FDHAX First Trust ShortPairCorr
  0.71VARBX Vivaldi Merger ArbitragePairCorr
  0.72VARCX First Trust MergerPairCorr
  0.71VARAX Vivaldi Merger ArbitragePairCorr
  0.83FPEIX First Trust PreferredPairCorr
  0.8FPEFX First Trust PreferredPairCorr
  0.79FPECX First Trust PreferredPairCorr
  0.81FPEAX First Trust PreferredPairCorr
  0.8FPERX First Trust PreferredPairCorr
  0.8OOSYX Oppenheimer SeniorPairCorr
  0.82OOSIX Oppenheimer SeniorPairCorr
  0.91LFRIX Floating RatePairCorr
  0.83LARCX Floating RatePairCorr
  0.89LFRRX Lord Abbett InvPairCorr
  0.91LFRFX Floating RatePairCorr
  0.9LRRRX Floating RatePairCorr
  0.86LRRTX Floating RatePairCorr
  0.9LRRVX Floating RatePairCorr
  0.84LRRKX Floating RatePairCorr
  0.64GPBFX Gmo E PlusPairCorr
  0.76WARCX Wells Fargo AdvantagePairCorr
  0.81AIDYX Diversified MunicipalPairCorr
  0.7VGCAX Vanguard Global CreditPairCorr
  0.7NERIX Neuberger Berman EmergingPairCorr
  0.66VFIIX Vanguard GnmaPairCorr

Moving against First Mutual Fund

  0.74PQTAX Pimco Trends ManagedPairCorr
  0.74PQTNX Pimco Trends ManagedPairCorr
  0.74PQTIX Aa Pimco TrPairCorr
  0.34GPMFX Guidepath Managed FuturesPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Risk-Adjusted Indicators

There is a big difference between First Mutual Fund performing well and First Trust Mutual Fund 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.