First Trust Correlations

FIW Etf

USD 109.48 0.90 0.83%

The current 90-days correlation between First Trust Water and Invesco SP Global is 0.82 (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 Water and DJI is 0.79 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Water 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 Water. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

Moving together with First Etf

0.74	XLB	Materials Select Sector	Pair Corr
0.88	VAW	Vanguard Materials Index	Pair Corr
0.81	XME	SPDR SP Metals	Pair Corr
0.99	PHO	Invesco Water Resources	Pair Corr
0.77	FXZ	First Trust Materials	Pair Corr
0.63	URNM	Sprott Uranium Miners	Pair Corr
0.75	IYM	iShares Basic Materials	Pair Corr
0.81	PWER	Macquarie ETF Trust	Pair Corr
0.74	HHH	Howard Hughes	Pair Corr
0.66	CSCO	Cisco Systems Aggressive Push	Pair Corr
0.68	XOM	Exxon Mobil Corp Sell-off Trend	Pair Corr
0.82	CAT	Caterpillar Fiscal Year End 3rd of February 2025	Pair Corr
0.78	INTC	Intel Fiscal Year End 23rd of January 2025	Pair Corr
0.71	AA	Alcoa Corp Fiscal Year End 15th of January 2025	Pair Corr
0.75	AXP	American Express Fiscal Year End 24th of January 2025	Pair Corr
0.78	GE	GE Aerospace Fiscal Year End 28th of January 2025	Pair Corr

Moving against First Etf

0.41	BA	Boeing Fiscal Year End 29th of January 2025	Pair Corr
0.37	MRK	Merck Company Fiscal Year End 6th of February 2025	Pair Corr

Related Correlations Analysis

	CGW	PIO	PHO	GRID	FXZ
CGW		0.96	0.5	0.58	0.62	CGW
PIO	0.96		0.52	0.57	0.61	PIO
PHO	0.5	0.52		0.8	0.75	PHO
GRID	0.58	0.57	0.8		0.8	GRID
FXZ	0.62	0.61	0.75	0.8		FXZ
	CGW	PIO	PHO	GRID	FXZ

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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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
CGW	0.60	(0.07)	(0.16)	0.00	0.74	(0.61)	1.14	(1.13)	3.54
PIO	0.66	(0.09)	(0.15)	(0.01)	0.83	(0.67)	1.33	(1.23)	3.84
PHO	0.71	(0.06)	(0.09)	0.05	0.75	(0.79)	1.51	(1.27)	4.02
GRID	0.81	(0.04)	(0.04)	0.08	1.06	(0.83)	1.65	(1.88)	5.04
FXZ	0.95	(0.11)	(0.08)	0.03	1.11	(1.02)	2.03	(1.54)	6.40

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