First Trust Correlations

FXG Etf

USD 69.42 0.51 0.74%

The current 90-days correlation between First Trust Consumer and First Trust Consumer 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

Very weak diversification

The correlation between First Trust Consumer and DJI is 0.53 (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 Consumer 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 Consumer. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in interest.

Moving together with First Etf

0.63	VDC	Vanguard Consumer Staples	Pair Corr
0.62	FSTA	Fidelity MSCI Consumer	Pair Corr
0.73	PBJ	Invesco Dynamic Food	Pair Corr

Related Correlations Analysis

	FXD	FXH	FXU	FXR	FXO
FXD		-0.24	0.84	0.97	0.91	FXD
FXH	-0.24		-0.53	-0.35	-0.38	FXH
FXU	0.84	-0.53		0.87	0.79	FXU
FXR	0.97	-0.35	0.87		0.95	FXR
FXO	0.91	-0.38	0.79	0.95		FXO
	FXD	FXH	FXU	FXR	FXO

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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

FXR	+ 0.97	FXD
FXO	+ 0.95	FXR
FXO	+ 0.91	FXD
FXR	+ 0.87	FXU
FXU	+ 0.84	FXD
FXO	+ 0.79	FXU

High negative correlations

FXU	- 0.53	FXH
FXO	- 0.38	FXH
FXR	- 0.35	FXH
FXH	- 0.24	FXD

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
FXD	0.72	0.03	0.02	0.15	0.59	(0.83)	1.71	(1.27)	3.07
FXH	0.67	(0.12)	0.00	(0.05)	0.00	0.00	1.16	(1.39)	3.21
FXU	0.71	0.14	0.08	0.55	0.61	(0.79)	1.66	(1.31)	4.50
FXR	0.79	0.04	0.08	0.15	0.65	(0.91)	1.90	(1.12)	5.58
FXO	0.88	0.06	0.13	0.16	0.62	(1.01)	1.68	(1.42)	9.52

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