First Trust Correlations

FTA Etf  USD 79.17  0.20  0.25%   
The current 90-days correlation between First Trust Large and First Trust Large is 0.61 (i.e., 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.

First Trust Correlation With Market

Weak diversification

The correlation between First Trust Large and DJI is 0.39 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Large 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 Large. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in estimate.

Moving together with First Etf

  0.97VTV Vanguard Value Index Sell-off TrendPairCorr
  0.87VYM Vanguard High DividendPairCorr
  0.98IWD iShares Russell 1000 Sell-off TrendPairCorr
  0.94DGRO iShares Core DividendPairCorr
  0.96IVE iShares SP 500PairCorr
  0.97DVY iShares Select DividendPairCorr
  0.96SPYV SPDR Portfolio SP Sell-off TrendPairCorr
  0.92FVD First Trust ValuePairCorr
  0.96IUSV iShares Core SPPairCorr
  0.9NOBL ProShares SP 500PairCorr
  0.74SHLD Global X FundsPairCorr
  0.82HUM Humana IncPairCorr
  0.77SWP SWP Growth IncomePairCorr
  0.69DUKH Ocean Park HighPairCorr
  0.64SMI VanEck Vectors ETFPairCorr
  0.88TRV The Travelers CompaniesPairCorr
  0.87CAT Caterpillar Earnings Call This WeekPairCorr
  0.75HD Home DepotPairCorr
  0.77XOM Exxon Mobil Corp Earnings Call This WeekPairCorr
  0.83CVX Chevron Corp Earnings Call This WeekPairCorr
  0.7DD Dupont De Nemours Earnings Call This WeekPairCorr

Moving against First Etf

  0.65BA BoeingPairCorr

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.