First Trust Correlations

FDM Etf  USD 70.97  0.67  0.95%   
The current 90-days correlation between First Trust Dow and iShares Micro Cap ETF is 0.9 (i.e., Almost no diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Trust moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Trust Dow moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

First Trust Correlation With Market

Weak diversification

The correlation between First Trust Dow and DJI is 0.31 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Dow 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 Dow. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in unemployment.

Moving together with First Etf

  0.86VBR Vanguard Small CapPairCorr
  0.8IWN iShares Russell 2000PairCorr
  0.91DFAT Dimensional TargetedPairCorr
  0.94IJS iShares SP SmallPairCorr
  0.94SLYV SPDR SP 600PairCorr
  0.9AVUV Avantis Small CapPairCorr
  0.85DES WisdomTree SmallCapPairCorr
  0.91MDYV SPDR SP 400PairCorr
  0.72CALF Pacer Small CapPairCorr
  0.8REGL ProShares SP MidCapPairCorr
  0.62OIH VanEck Oil ServicesPairCorr
  0.68ARKW ARK Next GenerationPairCorr
  0.78WTMF WisdomTree ManagedPairCorr
  0.77EWC iShares MSCI CanadaPairCorr
  0.92EZM WisdomTree MidCapPairCorr
  0.8NIXT Research AffiliatesPairCorr
  0.94RFDA RiverFront DynamicPairCorr
  0.61IWF iShares Russell 1000PairCorr
  0.61JPM JPMorgan ChasePairCorr

Moving against First Etf

  0.35IAUF ISharesPairCorr
  0.68PFE Pfizer Inc Earnings Call This WeekPairCorr

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.