First Trust Correlations

FSIG Etf  USD 19.07  0.03  0.16%   
The current 90-days correlation between First Trust Exchange and First Trust TCW is 0.64 (i.e., Poor 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

Significant diversification

The correlation between First Trust Exchange Traded and DJI is 0.04 (i.e., Significant 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 Investing Opportunities 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 gross domestic product.

Moving together with First Etf

  0.63BSV Vanguard Short Term Sell-off TrendPairCorr
  0.61IGSB iShares 1 5 Sell-off TrendPairCorr
  0.63SPSB SPDR Barclays Short Sell-off TrendPairCorr
  0.93ISTB iShares Core 1PairCorr
  0.92SLQD iShares 0 5PairCorr
  0.9GVI iShares IntermediatePairCorr
  0.92LDUR PIMCO Enhanced LowPairCorr
  0.93SUSB iShares ESG 1PairCorr
  0.61PMBS PIMCO Mortgage BackedPairCorr
  0.64PKB Invesco Dynamic BuildingPairCorr
  0.7FXR First Trust IndustriPairCorr
  0.73IDNA iShares Genomics ImmPairCorr
  0.8BBH VanEck Biotech ETFPairCorr
  0.85VSHY Virtus ETF TrustPairCorr
  0.86JNK SPDR Bloomberg High Sell-off TrendPairCorr
  0.64AMLX Amylyx PharmaceuticalsPairCorr
  0.75VXF Vanguard Extended MarketPairCorr
  0.66SSDRF SSgA SPDR ETFsPairCorr
  0.78IUSV iShares Core SPPairCorr
  0.9GEMD Goldman Sachs ETFPairCorr

Moving against First Etf

  0.54MPAY Exchange Traded ConceptsPairCorr

Related Correlations Analysis

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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   
MSFTMETA
JPMMSFT
JPMMETA
AMETA
JPMF
FUBER
  
High negative correlations   
MRKCRM
XOMCRM

First Trust Competition 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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
META  1.43  0.30  0.31  0.47  0.58 
 3.99 
 10.48 
MSFT  0.82  0.37  0.50  0.77  0.00 
 2.33 
 8.85 
UBER  1.56  0.10  0.07  0.33  1.35 
 4.19 
 10.87 
F  1.28  0.08  0.03  0.33  1.38 
 2.69 
 7.46 
T  0.97  0.04 (0.10) 0.41  1.16 
 2.35 
 5.71 
A  1.50 (0.13) 0.03  0.16  1.75 
 2.82 
 14.01 
CRM  1.30  0.25 (0.06)(0.23) 1.64 
 2.95 
 9.31 
JPM  0.87  0.17  0.16  0.41  0.47 
 2.25 
 6.03 
MRK  1.39 (0.13)(0.04) 0.12  1.85 
 2.90 
 10.58 
XOM  1.09  0.02 (0.09) 0.32  1.37 
 2.18 
 6.28