SPDR Dow Correlations

DIA Etf

USD 438.37 6.02 1.39%

The current 90-days correlation between SPDR Dow Jones and iShares Russell 2000 is 0.84 (i.e., Very poor diversification). The correlation of SPDR Dow 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.

SPDR Dow Correlation With Market

Poor diversification

The correlation between SPDR Dow Jones and DJI is 0.73 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SPDR Dow Jones 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 SPDR Dow Jones. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

Moving together with SPDR Etf

0.91	VTV	Vanguard Value Index	Pair Corr
0.86	VYM	Vanguard High Dividend	Pair Corr
0.92	IWD	iShares Russell 1000	Pair Corr
0.91	DGRO	iShares Core Dividend	Pair Corr
0.82	IVE	iShares SP 500	Pair Corr
0.76	DVY	iShares Select Dividend	Pair Corr
0.82	SPYV	SPDR Portfolio SP	Pair Corr
0.75	FVD	First Trust Value	Pair Corr
0.82	IUSV	iShares Core SP	Pair Corr
0.71	NOBL	ProShares SP 500 Low Volatility	Pair Corr
0.61	SMI	VanEck Vectors ETF	Pair Corr
0.8	HD	Home Depot	Pair Corr
0.61	JPM	JPMorgan Chase	Pair Corr

Moving against SPDR Etf

0.7

VXX

iPath Series B Low Volatility

Pair Corr

Related Correlations Analysis

	IWM	SPY	XLF	QQQ	XLE
IWM		0.48	0.2	0.09	0.49	IWM
SPY	0.48		0.69	0.8	0.29	SPY
XLF	0.2	0.69		0.3	0.55	XLF
QQQ	0.09	0.8	0.3		-0.18	QQQ
XLE	0.49	0.29	0.55	-0.18		XLE
	IWM	SPY	XLF	QQQ	XLE

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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

QQQ	+ 0.8	SPY
XLF	+ 0.69	SPY
XLE	+ 0.55	XLF
XLE	+ 0.49	IWM
SPY	+ 0.48	IWM
QQQ	+ 0.3	XLF

High negative correlations

XLE

- 0.18

QQQ

SPDR Dow Constituents Risk-Adjusted Indicators

There is a big difference between SPDR Etf performing well and SPDR Dow 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 SPDR Dow'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
IWM	0.83	(0.11)	0.00	(0.15)	0.00	0.00	1.52	(1.53)	6.27
SPY	0.62	0.01	0.02	0.00	0.93	(0.58)	1.20	(1.53)	3.75
XLF	0.66	0.08	0.09	0.08	0.89	(0.69)	1.24	(1.37)	4.09
QQQ	0.91	0.02	0.02	0.02	1.29	(0.88)	1.64	(2.08)	5.40
XLE	0.94	(0.08)	0.00	(0.17)	0.00	0.00	1.55	(2.41)	4.90

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