First Trust Correlations
FEN Fund | USD 15.94 0.02 0.13% |
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 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 Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Very weak diversification
The correlation between First Trust Energy and NYA is 0.4 (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 Energy and NYA in the same portfolio, assuming nothing else is changed.
First |
The ability to find closely correlated positions to First Trust could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Trust when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Trust - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Trust Energy to buy it.
Moving together with First Fund
0.82 | CWFIX | Chartwell Short Duration | PairCorr |
0.63 | HIGJX | Eagle Growth Me | PairCorr |
0.63 | HIGUX | Eagle Growth Me | PairCorr |
0.75 | CWSGX | Chartwell Small Cap | PairCorr |
0.81 | CWSDX | Chartwell Short Duration | PairCorr |
0.77 | UMBMX | Scout Mid Cap | PairCorr |
0.83 | BERIX | Berwyn Me Fund | PairCorr |
Moving against First Fund
Related Correlations Analysis
Please specify at least 3 valid symbols having historical data to build a meaningful correlation cloud. You can use symbol search above to locate your securities.
Be your own money manager
Our tools can tell you how much better you can do entering a position in First Trust without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
Run Portfolio Analyzer Now
Portfolio AnalyzerPortfolio analysis module that provides access to portfolio diagnostics and optimization engine |
All Next | Launch Module |
Already Invested in First Trust Energy?
The danger of trading First Trust Energy is mainly related to its market volatility and Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of First Trust is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than First Trust. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile First Trust Energy is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Trust Energy. Also, note that the market value of any fund could be tightly coupled with the direction of predictive economic indicators such as signals in income. Note that the First Trust Energy information on this page should be used as a complementary analysis to other First Trust's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.