First Trust Managed Etf Alpha and Beta Analysis

FMF Etf  USD 50.57  0.04  0.08%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as First Trust Managed. It also helps investors analyze the systematic and unsystematic risks associated with investing in First Trust over a specified time horizon. Remember, high First Trust's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to First Trust's market risk premium analysis include:
Beta
0.35
Alpha
0.0924
Risk
0.45
Sharpe Ratio
0.35
Expected Return
0.16
Please note that although First Trust alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, First Trust did 0.09  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of First Trust Managed etf's relative risk over its benchmark. First Trust Managed has a beta of 0.35  . As returns on the market increase, First Trust's returns are expected to increase less than the market. However, during the bear market, the loss of holding First Trust is expected to be smaller as well. .
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out First Trust Backtesting, Portfolio Optimization, First Trust Correlation, First Trust Hype Analysis, First Trust Volatility, First Trust History and analyze First Trust Performance.

First Trust Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. First Trust market risk premium is the additional return an investor will receive from holding First Trust long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in First Trust. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate First Trust's performance over market.
α0.09   β0.35

First Trust expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of First Trust's Buy-and-hold return. Our buy-and-hold chart shows how First Trust performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

First Trust Market Price Analysis

Market price analysis indicators help investors to evaluate how First Trust etf reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading First Trust shares will generate the highest return on investment. By understating and applying First Trust etf market price indicators, traders can identify First Trust position entry and exit signals to maximize returns.

First Trust Return and Market Media

The median price of First Trust for the period between Sat, Dec 30, 2023 and Fri, Mar 29, 2024 is 48.77 with a coefficient of variation of 3.2. The daily time series for the period is distributed with a sample standard deviation of 1.54, arithmetic mean of 48.22, and mean deviation of 1.4. The Etf received some media coverage during the period.
 Price Growth (%)  
       Timeline  
1
First Trust Managed Futures Strategy Fund ETF declares 0.3471 dividend
03/27/2024

About First Trust Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including First or other etfs. Alpha measures the amount that position in First Trust Managed has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards First Trust in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, First Trust's short interest history, or implied volatility extrapolated from First Trust options trading.

Build Portfolio with First Trust

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

Build Diversified Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
When determining whether First Trust Managed is a strong investment it is important to analyze First Trust's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact First Trust's future performance. For an informed investment choice regarding First Etf, refer to the following important reports:

Complementary Tools for First Etf analysis

When running First Trust's price analysis, check to measure First Trust's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy First Trust is operating at the current time. Most of First Trust's value examination focuses on studying past and present price action to predict the probability of First Trust's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move First Trust's price. Additionally, you may evaluate how the addition of First Trust to your portfolios can decrease your overall portfolio volatility.
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Money Managers
Screen money managers from public funds and ETFs managed around the world
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
First Trust technical etf analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, etf market cycles, or different charting patterns.
A focus of First Trust technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of First Trust trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...