First Trust Correlations

FSCS Etf

36.45 0.34 0.94%

The current 90-days correlation between First Trust SMID and Matthews China Discovery is 0.06 (i.e., Significant 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 weak diversification

The correlation between First Trust SMID and DJI is 0.52 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust SMID 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 SMID. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Moving together with First Etf

0.91	VO	Vanguard Mid Cap	Pair Corr
0.8	VXF	Vanguard Extended Market	Pair Corr
0.87	IJH	iShares Core SP	Pair Corr
0.93	IWR	iShares Russell Mid	Pair Corr
0.94	MDY	SPDR SP MIDCAP	Pair Corr
0.93	IVOO	Vanguard SP Mid	Pair Corr
0.91	JHMM	John Hancock Multifactor	Pair Corr
0.91	BBMC	JPMorgan BetaBuilders Mid	Pair Corr
0.81	XMMO	Invesco SP MidCap	Pair Corr
0.74	QQEW	First Trust NASDAQ	Pair Corr
0.79	HD	Home Depot	Pair Corr
0.84	VZ	Verizon Communications	Pair Corr
0.9	DD	Dupont De Nemours	Pair Corr
0.79	AA	Alcoa Corp	Pair Corr
0.72	INTC	Intel	Pair Corr
0.79	XOM	Exxon Mobil Corp Sell-off Trend	Pair Corr
0.69	CVX	Chevron Corp Sell-off Trend	Pair Corr

Moving against First Etf

0.49	FNGO	MicroSectors FANG Index	Pair Corr
0.41	FNGU	MicroSectors FANG Index	Pair Corr
0.68	BA	Boeing	Pair Corr

Related Correlations Analysis

	META	MSFT	UBER	F	T	A	CRM	JPM	MRK	XOM
META		0.05	-0.21	-0.5	0.67	0.8	0.38	0.71	-0.29	-0.56	META
MSFT	0.05		-0.42	-0.09	0.09	0.25	0.52	-0.13	0.29	-0.2	MSFT
UBER	-0.21	-0.42		0.66	-0.01	-0.01	-0.36	0.3	-0.12	0.74	UBER
F	-0.5	-0.09	0.66		0.04	-0.35	0.03	-0.09	0.05	0.93	F
T	0.67	0.09	-0.01	0.04		0.48	0.64	0.6	-0.22	-0.1	T
A	0.8	0.25	-0.01	-0.35	0.48		0.2	0.83	-0.17	-0.4	A
CRM	0.38	0.52	-0.36	0.03	0.64	0.2		0.07	0.11	-0.14	CRM
JPM	0.71	-0.13	0.3	-0.09	0.6	0.83	0.07		-0.46	-0.13	JPM
MRK	-0.29	0.29	-0.12	0.05	-0.22	-0.17	0.11	-0.46		0.03	MRK
XOM	-0.56	-0.2	0.74	0.93	-0.1	-0.4	-0.14	-0.13	0.03		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

XOM	+ 0.93	F
JPM	+ 0.83	A
A	+ 0.8	META
XOM	+ 0.74	UBER
JPM	+ 0.71	META
T	+ 0.67	META

High negative correlations

XOM	- 0.56	META
F	- 0.5	META
MRK	- 0.46	JPM
UBER	- 0.42	MSFT
XOM	- 0.4	A
CRM	- 0.36	UBER

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	1.33	0.30	0.18	0.67	1.28	(1.44)	3.51	(2.31)	7.11
MSFT	1.02	(0.05)	0.00	(0.04)	0.00	0.00	2.20	(2.14)	10.31
UBER	1.59	(0.18)	0.00	(0.31)	0.00	0.00	2.69	(5.35)	12.29
F	1.32	(0.17)	0.00	(0.23)	0.00	0.00	2.57	(2.90)	7.37
T	0.97	0.16	0.13	0.28	0.99	(1.14)	2.19	(1.97)	7.94
A	1.13	0.12	0.09	0.18	1.10	(1.33)	2.92	(2.42)	5.70
CRM	1.51	0.14	0.07	0.32	1.63	(1.75)	3.96	(2.95)	14.80
JPM	0.79	0.21	0.21	0.36	0.73	(0.96)	1.92	(1.39)	5.01
MRK	1.19	(0.22)	0.00	(0.76)	0.00	0.00	2.15	(2.69)	11.57
XOM	0.85	(0.17)	0.00	(0.30)	0.00	0.00	1.71	(2.14)	5.08

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