First Trust Correlations

FMB Etf  USD 49.41  0.04  0.08%   
The current 90-days correlation between First Trust Managed and First Trust Low is 0.69 (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

Weak diversification

The correlation between First Trust Managed and DJI is 0.31 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Managed 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 Managed. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in population.

Moving together with First Etf

  0.95MUB iShares National Muni Sell-off TrendPairCorr
  0.98VTEB Vanguard Tax Exempt Sell-off TrendPairCorr
  0.94ITM VanEck Intermediate MuniPairCorr
  0.92DFNM Dimensional ETF TrustPairCorr
  0.94MMIT IQ MacKay MunicipalPairCorr
  0.94HMOP Hartford MunicipalPairCorr
  0.95TAXF American Century DivPairCorr
  0.97JMUB JPMorgan MunicipalPairCorr
  0.9MUST Columbia Multi SectorPairCorr
  0.75PMBS PIMCO Mortgage BackedPairCorr
  0.82ITDD iShares TrustPairCorr
  0.85VBF Invesco Van KampenPairCorr
  0.77SRLN SPDR Blackstone SeniorPairCorr
  0.78BUFD FT Cboe VestPairCorr
  0.83NFLX Netflix Downward RallyPairCorr
  0.79CGGO Capital Group GlobalPairCorr
  0.82SPIB SPDR Barclays IntermPairCorr
  0.78QTOC Innovator ETFs TrustPairCorr
  0.76VABS Virtus Newfleet ABSMBSPairCorr
  0.77EUSB iShares TrustPairCorr
  0.77HIDE Alpha Architect HighPairCorr
  0.78PFUT Putnam Sustainable FuturePairCorr

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  1.51  0.26  0.21  0.32  1.10 
 3.99 
 10.48 
MSFT  0.90  0.30  0.27  0.47  0.54 
 2.33 
 8.85 
UBER  1.64  0.20  0.13  0.33  1.40 
 4.19 
 10.87 
F  1.32  0.14  0.06  0.32  1.47 
 2.69 
 7.46 
T  1.02 (0.05)(0.10) 0.00  1.35 
 2.35 
 5.71 
A  1.46 (0.07) 0.00  0.09  1.81 
 2.54 
 14.01 
CRM  1.33 (0.13)(0.04) 0.04  1.74 
 2.95 
 9.31 
JPM  0.90  0.22  0.18  0.38  0.67 
 2.25 
 6.03 
MRK  1.39 (0.09)(0.05) 0.04  1.96 
 2.88 
 10.58 
XOM  1.08  0.14  0.00 (9.00) 1.19 
 2.40 
 5.84