First Trust Correlations

FSMB Etf

USD 19.96 0.02 0.10%

The current 90-days correlation between First Trust Short and First Trust Ultra is 0.43 (i.e., Very weak 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

Very good diversification

The correlation between First Trust Short and DJI is -0.24 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First Trust Short 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 Short. 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

0.92	SUB	iShares Short Term	Pair Corr
0.82	SHM	SPDR Nuveen Bloomberg	Pair Corr
0.81	DFNM	Dimensional ETF Trust	Pair Corr
0.86	SMB	VanEck Short Muni	Pair Corr
0.72	TAFI	Ab Tax Aware	Pair Corr
0.64	PFFL	ETRACS 2xMonthly Pay	Pair Corr
0.7	VZ	Verizon Communications Aggressive Push	Pair Corr
0.61	GE	GE Aerospace Fiscal Year End 28th of January 2025	Pair Corr

Related Correlations Analysis

	FUMB	FMHI	FMB	FPEI	JMST
FUMB		0.05	-0.06	0.4	0.81	FUMB
FMHI	0.05		0.95	0.48	0.03	FMHI
FMB	-0.06	0.95		0.28	-0.1	FMB
FPEI	0.4	0.48	0.28		0.51	FPEI
JMST	0.81	0.03	-0.1	0.51		JMST
	FUMB	FMHI	FMB	FPEI	JMST

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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

FMB	+ 0.95	FMHI
JMST	+ 0.81	FUMB
JMST	+ 0.51	FPEI
FPEI	+ 0.48	FMHI
FPEI	+ 0.4	FUMB
FPEI	+ 0.28	FMB

High negative correlations

JMST	- 0.1	FMB
FMB	- 0.06	FUMB

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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
FUMB	0.06	0.00	(1.33)	0.14	0.00	(0.07)	0.15	(0.10)	0.35
FMHI	0.16	0.01	(0.37)	0.02	0.30	(0.16)	0.31	(0.37)	1.78
FMB	0.16	0.01	(0.40)	0.02	0.27	(0.16)	0.35	(0.33)	1.54
FPEI	0.13	0.01	(0.51)	0.32	0.10	(0.16)	0.32	(0.21)	1.06
JMST	0.03	0.00	(2.26)	(0.04)	0.00	(0.04)	0.06	(0.04)	0.22

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