First Trust Variance
| DDEC ETF | | | USD 46.73 -0.06 -0.13% |
Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean. Below is First Trust's current Variance with peer comparisons and related risk metrics.
Current Variance Value
At 0.2337, First Trust's Variance indicates low price variability. This places First Trust at the lower end of the volatility range for ETF.
Variance | = | SUM(RET DEV)2N |
| = | 0.2337 | |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Variance Peers Comparison
The peer group averages 0.21 for Variance, with First Trust at 0.2337 falling above that level. Readings span 0.1001 (First Trust Exchange Traded) to 0.2675 (FT Cboe Vest). First Trust has exhibited greater price dispersion than the peer average over the measured period.
Variance Relative To Other Indicators
The chart below plots Variance against Maximum Drawdown for First Trust and its peers. Each point represents one equity — position along the horizontal axis shows Variance while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
With Variance at
0.23 and Maximum Drawdown at
1.93 , First Trust shows a
8.25 -to-one ratio between these indicators. This indicates Maximum Drawdown substantially exceeds Variance for First Trust.
Methodology, Assumptions & Data Sources
First Trust has a current Variance reading of 0.2337. This Variance reading for First Trust results from applying the indicator's calculation rules to price and volume data over the selected window. Price data is sourced from standardized end-of-day feeds across supported exchanges, normalized for corporate actions. The output reflects the selected calculation window — changing the horizon will produce different readings. This ETF metric is provided for analytical reference.
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