First Trust Correlations

FEX Etf  USD 103.47  1.86  1.77%   
The current 90-days correlation between First Trust Large and First Trust Large is 0.84 (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 0.65 (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

  0.82VTI Vanguard Total StockPairCorr
  0.75SPY SPDR SP 500PairCorr
  0.75IVV iShares Core SPPairCorr
  0.8VIG Vanguard DividendPairCorr
  0.75VV Vanguard Large CapPairCorr
  0.98RSP Invesco SP 500PairCorr
  0.8IWB iShares Russell 1000PairCorr
  0.79ESGU iShares ESG AwarePairCorr
  0.95DFAC Dimensional Core EquityPairCorr
  0.63DD Dupont De NemoursPairCorr
  0.69CAT CaterpillarPairCorr
  0.69CVX Chevron CorpPairCorr
  0.76XOM Exxon Mobil Corp Sell-off TrendPairCorr
  0.64AA Alcoa CorpPairCorr

Moving against First Etf

  0.38PFE Pfizer IncPairCorr

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.