First Trust Variance
| FJAN ETF | | | USD 54.21 -0.12 -0.22% |
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
A Variance of 0.4211 for First Trust signals low price variability. This places First Trust at the lower end of the volatility range for ETF.
Variance | = | SUM(RET DEV)2N |
| = | 0.4211 | |
| 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 0.35 for Variance, with First Trust at 0.4211 falling above that level. Readings span 0.2164 (FT Cboe Vest) to 0.4301 (First Trust Exchange Traded). 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.
First Trust shows nearly
6.17 of Maximum Drawdown per unit of Variance (
0.42 versus
2.60 ). This indicates Maximum Drawdown substantially exceeds Variance for First Trust.
Methodology, Assumptions & Data Sources
First Trust's Variance currently stands at 0.4211. This Variance reading for First Trust results from applying the indicator's calculation rules to price and volume data over the selected window. Inputs are drawn from end-of-day closing prices reported by supported exchanges, adjusted for splits and dividends where applicable. 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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