IShares Healthcare Correlations

IHF Etf

USD 52.55 0.22 0.42%

The current 90-days correlation between iShares Healthcare and iShares Pharmaceuticals ETF is 0.43 (i.e., Very weak diversification). The correlation of IShares Healthcare 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.

IShares Healthcare Correlation With Market

Very weak diversification

The correlation between iShares Healthcare Providers and DJI is 0.55 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Healthcare Providers 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 Healthcare Providers. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in rate.

Moving together with IShares Etf

0.81	XLV	Health Care Select	Pair Corr
0.85	VHT	Vanguard Health Care	Pair Corr
0.61	IBB	iShares Biotechnology ETF	Pair Corr
0.65	IHI	iShares Medical Devices	Pair Corr
0.77	IXJ	iShares Global Healthcare	Pair Corr
0.83	IYH	iShares Healthcare ETF	Pair Corr
0.85	FHLC	Fidelity MSCI Health	Pair Corr
0.64	ARP	Advisors Inner Circle	Pair Corr
0.62	IGA	Voya Global Advantage	Pair Corr
0.72	GDXU	MicroSectors Gold Miners	Pair Corr
0.9	MMM	3M Company	Pair Corr
0.87	GE	GE Aerospace	Pair Corr
0.69	CVX	Chevron Corp	Pair Corr

Moving against IShares Etf

0.36	AA	Alcoa Corp	Pair Corr
0.33	MSFT	Microsoft	Pair Corr

Related Correlations Analysis

	IHE	IHI	IYH	IAI	IAK
IHE		0.61	0.91	0.23	0.75	IHE
IHI	0.61		0.77	0.85	0.12	IHI
IYH	0.91	0.77		0.42	0.63	IYH
IAI	0.23	0.85	0.42		-0.19	IAI
IAK	0.75	0.12	0.63	-0.19		IAK
	IHE	IHI	IYH	IAI	IAK

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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

IYH	+ 0.91	IHE
IAI	+ 0.85	IHI
IYH	+ 0.77	IHI
IAK	+ 0.75	IHE
IAK	+ 0.63	IYH
IHI	+ 0.61	IHE

High negative correlations

IAK

- 0.19

IAI

IShares Healthcare Constituents Risk-Adjusted Indicators

There is a big difference between IShares Etf performing well and IShares Healthcare 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 Healthcare'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
IHE	0.78	0.07	0.07	0.15	0.94	(0.76)	1.31	(1.53)	4.43
IHI	0.75	0.05	0.05	0.06	0.90	(0.80)	1.50	(1.61)	4.53
IYH	0.66	0.06	0.09	0.12	0.62	(0.73)	1.27	(1.15)	3.45
IAI	1.05	0.03	0.02	0.02	1.48	(1.03)	2.23	(2.52)	7.83
IAK	0.81	0.15	0.16	0.22	0.80	(0.90)	1.88	(1.11)	5.10

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