First Trust Correlations

FVD Etf

27.69 0.01 0.04%

The current 90-days correlation between First Trust Value and WisdomTree Natural Gas is -0.08 (i.e., Good 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

Modest diversification

The correlation between First Trust Value and DJI is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Value and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to First Trust could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Trust when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Trust - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Trust Value to buy it.

Moving together with First Etf

0.7	3CON	Leverage Shares 3x	Pair Corr
0.8	3ARE	Leverage Shares 3x	Pair Corr
0.75	3PLT	Leverage Shares 3x	Pair Corr
0.61	NVD3	Leverage Shares 3x	Pair Corr
0.82	QQQ5	Leverage Shares 5x	Pair Corr
0.85	RBOT	iShares Automation	Pair Corr
0.82	FINX	Global X FinTech	Pair Corr

Related Correlations Analysis

	3LNG	NGSP	NVD2	3LSI	3LGS	AAP2	3ULS	COCO	INFU	QQQ3
3LNG		0.73	-0.57	-0.14	-0.75	-0.02	0.27	0.02	-0.47	-0.36	3LNG
NGSP	0.73		-0.21	-0.11	-0.98	0.07	-0.1	0.36	-0.08	0.03	NGSP
NVD2	-0.57	-0.21		0.49	0.25	0.32	-0.83	0.22	0.95	0.9	NVD2
3LSI	-0.14	-0.11	0.49		0.14	0.42	-0.42	-0.28	0.44	0.38	3LSI
3LGS	-0.75	-0.98	0.25	0.14		-0.09	0.09	-0.37	0.13	-0.02	3LGS
AAP2	-0.02	0.07	0.32	0.42	-0.09		-0.47	0.18	0.33	0.4	AAP2
3ULS	0.27	-0.1	-0.83	-0.42	0.09	-0.47		-0.41	-0.86	-0.98	3ULS
COCO	0.02	0.36	0.22	-0.28	-0.37	0.18	-0.41		0.3	0.39	COCO
INFU	-0.47	-0.08	0.95	0.44	0.13	0.33	-0.86	0.3		0.9	INFU
QQQ3	-0.36	0.03	0.9	0.38	-0.02	0.4	-0.98	0.39	0.9		QQQ3
	3LNG	NGSP	NVD2	3LSI	3LGS	AAP2	3ULS	COCO	INFU	QQQ3

Click cells to compare fundamentals

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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

INFU	+ 0.95	NVD2
QQQ3	+ 0.9	NVD2
QQQ3	+ 0.9	INFU
NGSP	+ 0.73	3LNG
3LSI	+ 0.49	NVD2
INFU	+ 0.44	3LSI

High negative correlations

QQQ3	- 0.98	3ULS
3LGS	- 0.98	NGSP
INFU	- 0.86	3ULS
3ULS	- 0.83	NVD2
3LGS	- 0.75	3LNG
NVD2	- 0.57	3LNG

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
3LNG	6.40	0.21	0.01	(0.65)	7.68	(6.79)	18.04	(9.24)	42.75
NGSP	2.29	0.14	0.01	2.77	2.71	(2.38)	6.05	(4.16)	15.34
NVD2	4.33	0.33	0.05	0.74	5.48	(4.27)	8.22	(7.48)	26.09
3LSI	4.20	0.16	0.01	(1.12)	5.90	(3.90)	9.27	(9.61)	25.70
3LGS	6.36	(0.01)	0.00	(1.21)	0.00	0.00	11.74	(17.62)	52.63
AAP2	1.91	(0.07)	(0.03)	0.03	2.72	(1.83)	3.47	(4.59)	12.80
3ULS	1.72	(0.11)	0.00	0.25	0.00	0.00	3.75	(4.09)	13.06
COCO	2.50	0.33	0.08	1.08	2.80	(2.80)	5.84	(5.00)	14.79
INFU	0.16	0.01	(0.41)	0.53	0.14	(0.16)	0.40	(0.34)	1.25
QQQ3	2.27	0.13	0.04	0.25	3.06	(2.32)	5.41	(5.59)	17.97

Be your own money manager

Our tools can tell you how much better you can do entering a position in First Trust without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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