First Trust Correlations

FXL Etf  USD 158.81  0.72  0.45%   
The current 90-days correlation between First Trust Technology and First Trust Financials is 0.65 (i.e., Poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Trust moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Trust Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

First Trust Correlation With Market

Very weak diversification

The correlation between First Trust Technology and DJI is 0.59 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Technology 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 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 interest.

Moving together with First Etf

  0.98VGT Vanguard InformationPairCorr
  0.98XLK Technology Select SectorPairCorr
  0.98IYW iShares Technology ETFPairCorr
  0.97SMH VanEck Semiconductor ETFPairCorr
  0.66SOXX iShares Semiconductor ETFPairCorr
  0.97CIBR First Trust NASDAQPairCorr
  0.98FTEC Fidelity MSCI InformationPairCorr
  0.99IGV iShares Expanded Tech Sell-off TrendPairCorr
  0.99FDN First Trust DowPairCorr
  0.98IGM iShares Expanded TechPairCorr
  0.95USD ProShares Ultra Semi Downward RallyPairCorr
  0.84GBTC Grayscale Bitcoin TrustPairCorr
  0.98FNGO MicroSectors FANG IndexPairCorr
  0.83BITO ProShares BitcoinPairCorr
  0.93CRPT First Trust SkyBridgePairCorr
  0.82NRGU Bank of MontrealPairCorr
  0.97BULZ MicroSectors SolactivePairCorr
  0.89BITS Global X BlockchainPairCorr
  0.98FNGG Direxion Daily SelectPairCorr
  0.68DFEN Direxion Daily AerospacePairCorr
  0.63AA Alcoa CorpPairCorr
  0.63DIS Walt DisneyPairCorr
  0.63JPM JPMorgan ChasePairCorr
  0.64CVX Chevron CorpPairCorr
  0.67CSCO Cisco Systems Sell-off TrendPairCorr

Moving against First Etf

  0.65MCD McDonaldsPairCorr
  0.33KO Coca ColaPairCorr

Related Correlations Analysis

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First Trust Constituents 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.