ETN vs FNGD: Correlation
How closely do Eaton Corporation (ETN) and MicroSectors FANG Index -3X Inverse Leveraged ETNs due (FNGD) trade together? Their weekly returns over three years give a correlation of -0.58, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ETN and FNGD?
On 3 years of weekly data the ETN/FNGD correlation comes out at -0.58, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.33 versus -0.58 over 3 years. The 5-year figure is -0.51, and annualized covariance runs at -1328.7 %².
Out of 44 assets tracked against ETN, FNGD lands near the bottom at #44. Their recent paths diverged sharply: over the last 12 months ETN outperformed by 75.4 percentage points (+19.7% for ETN against -55.7% for FNGD). Note the risk asymmetry: FNGD runs 2.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ETN vs FNGD: side by side
| ETN (Eaton Corporation) | FNGD (MicroSectors FANG Index -3X Inverse Leveraged ETNs due) | |
|---|---|---|
| 1-year return | +19.7% | -55.7% |
| 5-year return | +164.1% | -99.4% |
| Volatility (ann.) | 30.2% | 75.7% |
| Beta vs S&P 500 | 1.33 | -4.54 |
| Max drawdown (3Y) | -34.5% | -97.6% |
| Market cap | $161.6B | – |
| P/E (trailing) | 42.4 | 20.6 |
| Dividend yield | 1.02% | 0.00% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | ETN | FNGD |
|---|---|---|
| 2022 | -7.2% | +52.2% |
| 2023 | +56.2% | -90.1% |
| 2024 | +39.5% | -76.6% |
| 2025 | -2.8% | -61.4% |
| 2026 | +31.7% | -49.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ETN and FNGD good diversifiers for each other?
Yes: at -0.58, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between ETN and FNGD?
As of 2026-08-27, the correlation of weekly returns between ETN and FNGD is -0.58 over 3 years, -0.33 over 1 year and -0.51 over 5 years.
Is FNGD a good diversifier for ETN?
Yes: at -0.58, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.58 mean?
A reading of -0.58 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Related comparisons
Hubs: ETN correlations · FNGD correlations
