First Trust Correlations

FPE Etf

USD 17.85 0.03 0.17%

The current 90-days correlation between First Trust Preferred and Invesco Variable Rate is 0.52 (i.e., Very 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.

First Trust Correlation With Market

Significant diversification

The correlation between First Trust Preferred and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Preferred 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 Preferred. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Moving together with First Etf

0.95	PFF	iShares Preferred	Pair Corr
0.83	PGX	Invesco Preferred ETF	Pair Corr
0.93	PFFD	Global X Preferred	Pair Corr
0.78	VRP	Invesco Variable Rate	Pair Corr
0.75	PGF	Invesco Financial	Pair Corr
0.75	PSK	SPDR ICE Preferred	Pair Corr
0.95	PFXF	VanEck Preferred Sec	Pair Corr
0.97	FPEI	First Trust Institutional	Pair Corr
0.94	PFFA	Virtus InfraCap Preferred	Pair Corr
0.64	EWC	iShares MSCI Canada	Pair Corr
0.62	INTC	Intel Fiscal Year End 23rd of January 2025	Pair Corr
0.68	DD	Dupont De Nemours Fiscal Year End 4th of February 2025	Pair Corr
0.79	HD	Home Depot	Pair Corr

Moving against First Etf

0.78	HUM	Humana Inc Fiscal Year End 23rd of January 2025	Pair Corr
0.64	BA	Boeing Fiscal Year End 29th of January 2025	Pair Corr
0.31	MRK	Merck Company Fiscal Year End 6th of February 2025	Pair Corr

Related Correlations Analysis

	VRP	PFXF	HYLS	FTSL	PSK
VRP		0.82	0.83	0.86	0.32	VRP
PFXF	0.82		0.89	0.54	0.76	PFXF
HYLS	0.83	0.89		0.63	0.6	HYLS
FTSL	0.86	0.54	0.63		-0.1	FTSL
PSK	0.32	0.76	0.6	-0.1		PSK
	VRP	PFXF	HYLS	FTSL	PSK

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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

HYLS	+ 0.89	PFXF
FTSL	+ 0.86	VRP
HYLS	+ 0.83	VRP
PFXF	+ 0.82	VRP
PSK	+ 0.76	PFXF
FTSL	+ 0.63	HYLS

High negative correlations

PSK

- 0.1

FTSL

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
VRP	0.18	0.02	(0.43)	0.30	0.00	(0.23)	0.54	(0.34)	1.20
PFXF	0.37	0.02	(0.12)	0.20	0.46	(0.37)	0.72	(0.89)	2.31
HYLS	0.14	0.00	(0.51)	0.17	0.08	(0.15)	0.34	(0.31)	0.84
FTSL	0.07	0.02	(0.59)	0.52	0.00	(0.09)	0.18	(0.11)	0.88
PSK	0.37	0.00	(0.20)	0.06	0.53	(0.36)	0.85	(1.00)	2.35

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