First Trust Correlations

MDEV Etf

USD 21.10 0.09 0.43%

The current 90-days correlation between First Trust Exchange and First Trust Exchange Traded is 0.52 (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 weak diversification

The correlation between First Trust Exchange Traded and DJI is 0.56 (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 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 income.

Moving together with First Etf

0.64	GE	GE Aerospace Fiscal Year End 28th of January 2025	Pair Corr
0.64	PFE	Pfizer Inc Fiscal Year End 4th of February 2025	Pair Corr
0.67	VZ	Verizon Communications Aggressive Push	Pair Corr

Moving against First Etf

0.43	MEME	Roundhill Investments	Pair Corr
0.33	RSPY	Tuttle Capital Management	Pair Corr
0.45	BAC	Bank of America Aggressive Push	Pair Corr
0.44	DIS	Walt Disney	Pair Corr

Related Correlations Analysis

	ILDR	XPND	BMED	XHE	FTXH
ILDR		0.99	-0.25	0.39	-0.52	ILDR
XPND	0.99		-0.24	0.41	-0.49	XPND
BMED	-0.25	-0.24		0.33	0.91	BMED
XHE	0.39	0.41	0.33		0.15	XHE
FTXH	-0.52	-0.49	0.91	0.15		FTXH
	ILDR	XPND	BMED	XHE	FTXH

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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

XPND	+ 0.99	ILDR
FTXH	+ 0.91	BMED
XHE	+ 0.41	XPND
XHE	+ 0.39	ILDR
XHE	+ 0.33	BMED
FTXH	+ 0.15	XHE

High negative correlations

FTXH	- 0.52	ILDR
FTXH	- 0.49	XPND
BMED	- 0.25	ILDR
BMED	- 0.24	XPND

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
ILDR	0.94	0.01	0.02	0.11	1.23	(1.00)	1.91	(2.61)	5.75
XPND	0.81	0.00	0.01	0.10	1.08	(0.80)	1.60	(2.17)	5.76
BMED	0.69	(0.15)	0.00	(0.09)	0.00	0.00	1.17	(1.46)	5.44
XHE	0.79	(0.03)	(0.04)	0.06	0.96	(0.82)	1.35	(1.68)	4.71
FTXH	0.61	(0.15)	0.00	(0.12)	0.00	0.00	1.04	(1.56)	4.86

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