| QTEC Etf | | | USD 218.74 0.07 0.03% |
The current 90-days correlation between First Trust NASDAQ and First Trust Dow is 0.8 (i.e., Very 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
Poor diversification
The correlation between First Trust NASDAQ 100 Technol and DJI is 0.68 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust NASDAQ 100 Technol and DJI in the same portfolio, assuming nothing else is changed.
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Your Equity Center to better understand how to build diversified portfolios, which includes a position in First Trust NASDAQ 100 Technology. 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.