First Trust Correlations

KNGZ Etf

35.06 0.20 0.57%

The current 90-days correlation between First Trust Exchange and FT Vest Equity is 0.48 (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. If the correlation is 0, the equities are not correlated; they are entirely random.

First Trust Correlation With Market

Very poor diversification

The correlation between First Trust Exchange Traded and DJI is 0.88 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Exchange Traded and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in First Trust Exchange Traded. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in price.

Moving together with First Etf

0.94	VTV	Vanguard Value Index	Pair Corr
0.93	VYM	Vanguard High Dividend	Pair Corr
0.9	IWD	iShares Russell 1000	Pair Corr
0.96	DGRO	iShares Core Dividend	Pair Corr
0.9	IVE	iShares SP 500	Pair Corr
0.81	DVY	iShares Select Dividend	Pair Corr
0.9	SPYV	SPDR Portfolio SP	Pair Corr
0.85	FVD	First Trust Value	Pair Corr
0.9	IUSV	iShares Core SP	Pair Corr
0.92	NOBL	ProShares SP 500	Pair Corr
0.66	NVDL	GraniteShares 15x Long	Pair Corr
0.66	NVDX	T Rex 2X	Pair Corr
0.66	NVDU	Direxion Daily NVDA	Pair Corr
0.67	CRPT	First Trust SkyBridge	Pair Corr
0.65	DAPP	VanEck Digital Trans	Pair Corr
0.62	DPST	Direxion Daily Regional	Pair Corr
0.67	WGMI	Valkyrie Bitcoin Miners	Pair Corr
0.91	HD	Home Depot	Pair Corr
0.72	CVX	Chevron Corp Sell-off Trend	Pair Corr
0.87	AXP	American Express Fiscal Year End 24th of January 2025	Pair Corr
0.69	WMT	Walmart Aggressive Push	Pair Corr
0.93	CAT	Caterpillar Fiscal Year End 3rd of February 2025	Pair Corr
0.73	IBM	International Business Fiscal Year End 22nd of January 2025	Pair Corr
0.71	XOM	Exxon Mobil Corp Fiscal Year End 7th of February 2025	Pair Corr
0.81	CSCO	Cisco Systems Sell-off Trend	Pair Corr
0.63	DIS	Walt Disney Sell-off Trend	Pair Corr
0.8	HPQ	HP Inc	Pair Corr
0.61	TRV	The Travelers Companies Fiscal Year End 17th of January 2025	Pair Corr

Moving against First Etf

0.54	MRK	Merck Company Fiscal Year End 6th of February 2025	Pair Corr
0.51	BA	Boeing Fiscal Year End 29th of January 2025	Pair Corr
0.36	PFE	Pfizer Inc Aggressive Push	Pair Corr

Related Correlations Analysis

	DHDG	MBCC	DIHP	MCHS	DINT	DJAN	MDLV	DJUL	DJUN
DHDG		-0.09	0.53	-0.3	-0.34	-0.39	0.06	-0.3	-0.31	DHDG
MBCC	-0.09		-0.42	0.46	0.55	0.92	0.68	0.96	0.95	MBCC
DIHP	0.53	-0.42		-0.06	-0.05	-0.63	0.06	-0.54	-0.56	DIHP
MCHS	-0.3	0.46	-0.06		0.97	0.52	0.57	0.55	0.55	MCHS
DINT	-0.34	0.55	-0.05	0.97		0.6	0.66	0.63	0.63	DINT
DJAN	-0.39	0.92	-0.63	0.52	0.6		0.54	0.99	0.99	DJAN
MDLV	0.06	0.68	0.06	0.57	0.66	0.54		0.62	0.6	MDLV
DJUL	-0.3	0.96	-0.54	0.55	0.63	0.99	0.62		1.0	DJUL
DJUN	-0.31	0.95	-0.56	0.55	0.63	0.99	0.6	1.0		DJUN
	DHDG	MBCC	DIHP	MCHS	DINT	DJAN	MDLV	DJUL	DJUN

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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

DJUN	+ 1.0	DJUL
DJUL	+ 0.99	DJAN
DJUN	+ 0.99	DJAN
DINT	+ 0.97	MCHS
DJUL	+ 0.96	MBCC
DJUN	+ 0.95	MBCC

High negative correlations

DJAN	- 0.63	DIHP
DJUN	- 0.56	DIHP
DJUL	- 0.54	DIHP
DIHP	- 0.42	MBCC
DJAN	- 0.39	DHDG
DINT	- 0.34	DHDG

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
DHDG	0.28	0.03	(0.13)	0.28	0.24	(0.29)	0.53	(0.68)	2.01
MBCC	0.53	0.00	(0.05)	0.13	0.57	(0.54)	1.12	(1.07)	3.36
DIHP	0.64	(0.14)	0.00	(0.17)	0.00	0.00	1.27	(1.53)	3.83
MCHS	1.96	0.25	0.05	1.20	2.40	(2.21)	5.60	(3.78)	19.75
DINT	1.22	0.15	0.04	0.47	1.71	(1.27)	3.13	(2.15)	10.90
DJAN	0.17	0.00	(0.27)	0.15	0.17	(0.19)	0.42	(0.34)	1.25
MDLV	0.41	0.00	(0.14)	0.14	0.41	(0.44)	0.79	(0.80)	2.04
DJUL	0.29	0.00	(0.15)	0.13	0.32	(0.32)	0.60	(0.65)	2.11
DJUN	0.29	0.01	(0.14)	0.15	0.30	(0.32)	0.64	(0.67)	2.00

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