First Trust Correlations

FEX Etf  USD 103.02  0.29  0.28%   
The current 90-days correlation between First Trust Large and First Trust Large is 0.85 (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

Poor diversification

The correlation between First Trust Large and DJI is 0.77 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Large 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 Large. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in income.

Moving together with First Etf

  0.95VTI Vanguard Total StockPairCorr
  0.95SPY SPDR SP 500PairCorr
  0.95IVV iShares Core SPPairCorr
  0.87VIG Vanguard DividendPairCorr
  0.95VV Vanguard Large CapPairCorr
  0.96RSP Invesco SP 500PairCorr
  0.96IWB iShares Russell 1000PairCorr
  0.94ESGU iShares ESG AwarePairCorr
  0.97DFAC Dimensional Core EquityPairCorr
  0.95SPLG SPDR Portfolio SPPairCorr
  0.74GBTC Grayscale Bitcoin TrustPairCorr
  0.83FNGO MicroSectors FANG IndexPairCorr
  0.63NAIL Direxion Daily HomebPairCorr
  0.83FNGU MicroSectors FANG Index Symbol ChangePairCorr
  0.63FCG First Trust NaturalPairCorr
  0.7GUSH Direxion Daily SPPairCorr
  0.95DUSL Direxion Daily IndusPairCorr
  0.71BA BoeingPairCorr
  0.91AXP American ExpressPairCorr
  0.69DIS Walt DisneyPairCorr
  0.71HPQ HP IncPairCorr
  0.81JPM JPMorgan Chase Sell-off TrendPairCorr
  0.9BAC Bank of America Aggressive PushPairCorr
  0.76WMT WalmartPairCorr

Moving against First Etf

  0.32KO Coca ColaPairCorr

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.