First Trust Correlations

NOVB-F Etf

CAD 43.62 0.30 0.69%

The current 90-days correlation between First Trust Cboe and First Trust Indxx is 0.12 (i.e., Average 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

Good diversification

The correlation between First Trust Cboe and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Cboe 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 Cboe to buy it.

Moving together with First Etf

0.81	XIU	iShares SPTSX 60	Pair Corr
0.77	XSP	iShares Core SP	Pair Corr
0.81	XIC	iShares Core SPTSX	Pair Corr
0.81	ZCN	BMO SPTSX Capped	Pair Corr
0.87	ZSP	BMO SP 500	Pair Corr
0.87	VFV	Vanguard SP 500	Pair Corr
0.68	ZEB	BMO SPTSX Equal	Pair Corr
0.87	DRMU	Desjardins RI USA	Pair Corr
0.91	FTN	Financial 15 Split	Pair Corr
0.85	DRFG	Desjardins RI Global	Pair Corr
0.65	HAC	Global X Seasonal	Pair Corr
0.83	QCE	Mackenzie Canadian Large	Pair Corr
0.81	QCN	Mackenzie Canadian Equity	Pair Corr

Moving against First Etf

0.78	TCLB	TD Canadian Long	Pair Corr
0.59	ZAG	BMO Aggregate Bond	Pair Corr
0.58	XBB	iShares Canadian Universe	Pair Corr
0.44	QDX	Mackenzie International	Pair Corr

Related Correlations Analysis

	NXTG	FSL	FHH-F	BLCK	FHD	SDVY	QCLN	NOVB-F	TXF
NXTG		0.6	-0.55	0.91	0.74	-0.09	0.3	0.56	0.79	NXTG
FSL	0.6		-0.31	0.79	0.84	0.22	0.11	0.78	0.67	FSL
FHH-F	-0.55	-0.31		-0.52	-0.43	0.13	-0.59	-0.25	-0.64	FHH-F
BLCK	0.91	0.79	-0.52		0.88	0.08	0.26	0.75	0.86	BLCK
FHD	0.74	0.84	-0.43	0.88		0.38	0.24	0.9	0.78	FHD
SDVY	-0.09	0.22	0.13	0.08	0.38		0.13	0.44	0.02	SDVY
QCLN	0.3	0.11	-0.59	0.26	0.24	0.13		0.04	0.5	QCLN
NOVB-F	0.56	0.78	-0.25	0.75	0.9	0.44	0.04		0.57	NOVB-F
TXF	0.79	0.67	-0.64	0.86	0.78	0.02	0.5	0.57		TXF
	NXTG	FSL	FHH-F	BLCK	FHD	SDVY	QCLN	NOVB-F	TXF

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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

BLCK	+ 0.91	NXTG
NOVB-F	+ 0.9	FHD
FHD	+ 0.88	BLCK
TXF	+ 0.86	BLCK
FHD	+ 0.84	FSL
TXF	+ 0.79	NXTG

High negative correlations

TXF	- 0.64	FHH-F
QCLN	- 0.59	FHH-F
FHH-F	- 0.55	NXTG
BLCK	- 0.52	FHH-F
FHD	- 0.43	FHH-F
FHH-F	- 0.31	FSL

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
NXTG	0.53	0.01	(0.12)	0.24	0.70	(0.55)	1.01	(1.21)	3.36
FSL	0.31	0.02	(0.15)	0.43	0.44	(0.44)	0.76	(0.81)	5.22
FHH-F	0.10	0.00	0.00	(0.24)	0.00	0.00	0.00	0.00	5.64
BLCK	0.56	0.08	(0.05)	1.27	0.49	(0.70)	1.11	(1.02)	4.14
FHD	0.89	0.12	0.02	0.86	0.90	(1.12)	2.37	(1.75)	7.34
SDVY	0.85	0.22	0.26	0.35	0.00	(1.46)	1.89	(1.01)	9.61
QCLN	1.27	0.02	(0.05)	0.28	1.63	(1.44)	3.10	(2.65)	8.34
NOVB-F	0.13	0.04	(0.30)	(9.20)	0.00	(0.36)	0.44	(0.19)	1.72
TXF	0.91	0.01	(0.05)	0.15	1.23	(0.97)	1.82	(2.03)	6.01

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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