IShares Utilities Correlations

Etfs . USA . 
Etf . iShares Utilities ETF
IDU Etf  USD 100.66  0.35  0.35%   
The current 90-days correlation between iShares Utilities ETF and iShares Industrials ETF is 0.6 (i.e., Poor diversification). The correlation of IShares Utilities 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. If the correlation is 0, the equities are not correlated; they are entirely random.

IShares Utilities Correlation With Market

Weak diversification

The correlation between iShares Utilities ETF and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Utilities ETF and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in iShares Utilities ETF. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in unemployment.

Moving together with IShares Etf

  0.99XLU Utilities Select SectorPairCorr
  0.99VPU Vanguard Utilities IndexPairCorr
  0.99FUTY Fidelity MSCI UtilitiesPairCorr
  0.91FXU First Trust UtilitiesPairCorr
  0.9JXI iShares Global UtilitiesPairCorr
  0.61DIG ProShares Ultra OilPairCorr
  0.77GDXU MicroSectors Gold MinersPairCorr
  0.81MMM 3M CompanyPairCorr
  0.7JNJ Johnson JohnsonPairCorr
  0.78IBM International BusinessPairCorr
  0.86GE GE AerospacePairCorr
  0.72INTC IntelPairCorr
  0.74CVX Chevron Corp Sell-off TrendPairCorr

Moving against IShares Etf

  0.38RNRG Global X RenewablePairCorr
  0.38YLCO Global X YieldCoPairCorr
  0.38NAIL Direxion Daily Homeb Downward RallyPairCorr
  0.73MRK Merck CompanyPairCorr
  0.51MSFT MicrosoftPairCorr
  0.34AA Alcoa CorpPairCorr

Related Correlations Analysis

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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   
IYC
+ 0.88
IYJ
IYM
+ 0.79
IYZ
IYM
+ 0.58
IYJ
IYZ
+ 0.57
IYJ
IYZ
+ 0.43
IYK
IYM
+ 0.38
IYK
  
High negative correlations   
IYK
- 0.55
IYC
IYK
- 0.35
IYJ

IShares Utilities Constituents Risk-Adjusted Indicators

There is a big difference between IShares Etf performing well and IShares Utilities 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 IShares Utilities' 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.

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