First Trust Correlations

FEUZ Etf  USD 48.44  0.96  1.94%   
The current 90-days correlation between First Trust Eurozone and First Trust Germany is 0.89 (i.e., Very poor 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 Eurozone and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Eurozone 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 Eurozone. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in employment.

Moving together with First Etf

  0.97VGK Vanguard FTSE Europe Sell-off TrendPairCorr
  0.98EZU iShares MSCI Eurozone Sell-off TrendPairCorr
  0.97BBEU JPMorgan BetaBuildersPairCorr
  0.97IEUR iShares Core MSCI Sell-off TrendPairCorr
  0.96FEZ SPDR EURO STOXXPairCorr
  0.97IEV iShares Europe ETFPairCorr
  0.88HEDJ WisdomTree Europe HedgedPairCorr
  0.86DBEU Xtrackers MSCI EuropePairCorr
  0.9HEZU iShares Currency HedgedPairCorr
  1.0FEP First Trust EuropePairCorr
  0.74BND Vanguard Total BondPairCorr
  0.67VEA Vanguard FTSE DevelopedPairCorr
  0.61BKCI BNY Mellon ETFPairCorr
  0.63TRV The Travelers CompaniesPairCorr
  0.74VZ Verizon Communications Aggressive PushPairCorr
  0.62MCD McDonaldsPairCorr
  0.62KO Coca Cola Sell-off TrendPairCorr

Moving against First Etf

  0.69VB Vanguard Small CapPairCorr
  0.46VUG Vanguard Growth IndexPairCorr
  0.36VTI Vanguard Total StockPairCorr
  0.35SPY SPDR SP 500PairCorr
  0.35IVV iShares Core SPPairCorr
  0.57AXP American ExpressPairCorr
  0.47BAC Bank of America Aggressive PushPairCorr
  0.42DIS Walt DisneyPairCorr
  0.36PFE Pfizer IncPairCorr
  0.32HD Home DepotPairCorr

Related Correlations Analysis

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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.