First Trust Correlations

FAAR Etf

USD 27.98 0.18 0.65%

The current 90-days correlation between First Trust Alternative and First Trust Emerging is 0.39 (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 good diversification

The correlation between First Trust Alternative and DJI is -0.3 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Alternative 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 Alternative. 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

0.63

NRGU

Bank Of Montreal

Pair Corr

Moving against First Etf

0.49	IDU	iShares Utilities ETF	Pair Corr
0.48	ATMP	Barclays ETN Select Low Volatility	Pair Corr
0.46	YCS	ProShares UltraShort Yen	Pair Corr
0.46	MSTY	YieldMax MSTR Option	Pair Corr
0.46	DISO	Tidal Trust II	Pair Corr
0.43	TBT	ProShares UltraShort	Pair Corr
0.43	BTC	Grayscale Bitcoin Mini	Pair Corr
0.4	FTGC	First Trust Global	Pair Corr
0.39	BCI	abrdn Bloomberg All	Pair Corr
0.38	COMB	GraniteShares Bloomberg	Pair Corr
0.38	GCC	WisdomTree Continuous	Pair Corr
0.38	AMZA	InfraCap MLP ETF	Pair Corr
0.37	DJP	iPath Bloomberg Commodity	Pair Corr
0.37	DIG	ProShares Ultra Oil	Pair Corr
0.37	MLPR	ETRACS Quarterly Pay	Pair Corr
0.35	CMDY	iShares Bloomberg Roll	Pair Corr
0.33	USD	ProShares Ultra Semi	Pair Corr
0.32	SGG	Barclays Capital	Pair Corr
0.62	AXP	American Express Fiscal Year End 24th of January 2025	Pair Corr
0.6	INTC	Intel Fiscal Year End 23rd of January 2025	Pair Corr
0.59	DIVG	Invesco Exchange Traded	Pair Corr
0.59	HD	Home Depot	Pair Corr
0.58	DIVB	iShares Dividend	Pair Corr
0.57	SPY	SPDR SP 500 Aggressive Push	Pair Corr
0.57	CAT	Caterpillar Fiscal Year End 3rd of February 2025	Pair Corr
0.54	CSCO	Cisco Systems Aggressive Push	Pair Corr
0.54	WMT	Walmart Aggressive Push	Pair Corr
0.46	IDGT	iShares Trust Symbol Change	Pair Corr
0.45	BAC	Bank of America Fiscal Year End 10th of January 2025	Pair Corr
0.43	CVX	Chevron Corp Fiscal Year End 7th of February 2025	Pair Corr
0.42	HPQ	HP Inc	Pair Corr
0.39	DIS	Walt Disney	Pair Corr
0.31	DD	Dupont De Nemours Fiscal Year End 4th of February 2025	Pair Corr

Related Correlations Analysis

	META	MSFT	UBER	F	T	A	CRM	JPM	MRK	XOM
META		0.29	0.57	-0.02	0.6	0.02	0.68	0.28	-0.56	0.72	META
MSFT	0.29		0.24	0.12	0.2	-0.02	0.02	-0.17	0.11	-0.18	MSFT
UBER	0.57	0.24		-0.02	0.02	0.26	0.05	-0.1	0.04	0.36	UBER
F	-0.02	0.12	-0.02		0.0	-0.37	0.36	0.62	-0.24	0.29	F
T	0.6	0.2	0.02	0.0		-0.48	0.73	0.49	-0.76	0.39	T
A	0.02	-0.02	0.26	-0.37	-0.48		-0.48	-0.65	0.64	-0.01	A
CRM	0.68	0.02	0.05	0.36	0.73	-0.48		0.83	-0.92	0.68	CRM
JPM	0.28	-0.17	-0.1	0.62	0.49	-0.65	0.83		-0.83	0.51	JPM
MRK	-0.56	0.11	0.04	-0.24	-0.76	0.64	-0.92	-0.83		-0.57	MRK
XOM	0.72	-0.18	0.36	0.29	0.39	-0.01	0.68	0.51	-0.57		XOM
	META	MSFT	UBER	F	T	A	CRM	JPM	MRK	XOM

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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

JPM	+ 0.83	CRM
CRM	+ 0.73	T
XOM	+ 0.72	META
CRM	+ 0.68	META
XOM	+ 0.68	CRM
MRK	+ 0.64	A

High negative correlations

MRK	- 0.92	CRM
MRK	- 0.83	JPM
MRK	- 0.76	T
JPM	- 0.65	A
XOM	- 0.57	MRK
MRK	- 0.56	META

First Trust Competition 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
META	1.05	0.00	(0.03)	0.12	1.40	(1.14)	2.62	(3.15)	8.02
MSFT	0.88	(0.08)	(0.07)	0.01	1.51	(0.82)	2.09	(1.85)	8.19
UBER	1.60	(0.14)	0.00	(0.02)	0.00	0.00	2.69	(2.44)	20.10
F	1.43	(0.12)	(0.02)	0.04	2.19	(1.43)	2.75	(2.90)	11.72
T	0.92	0.28	0.14	24.43	0.85	(1.04)	2.56	(1.72)	6.47
A	1.14	(0.13)	0.00	(0.12)	0.00	0.00	2.29	(2.42)	9.02
CRM	1.28	0.29	0.25	0.37	0.90	(1.52)	3.18	(1.91)	9.09
JPM	1.12	0.00	0.06	0.12	1.44	(1.17)	2.05	(2.00)	15.87
MRK	0.85	(0.26)	0.00	(1.12)	0.00	0.00	1.73	(2.13)	4.89
XOM	1.03	0.03	(0.01)	0.18	1.21	(1.11)	2.14	(2.09)	5.78

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