IShares Russell Correlations

Etfs . USA . 
Etf . iShares Russell 2000
IWM Etf  USD 203.79  1.27  0.62%   
The current 90-days correlation between iShares Russell 2000 and SPDR Dow Jones is 0.87 (i.e., Very poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as IShares Russell moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if iShares Russell 2000 moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

IShares Russell Correlation With Market

Poor diversification

The correlation between iShares Russell 2000 and DJI is 0.7 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Russell 2000 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 Russell 2000. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in housing.

Moving together with IShares Etf

  0.99VB Vanguard Small CapPairCorr
  0.74IJR iShares Core SPPairCorr
  0.75VRTIX Vanguard Russell 2000PairCorr
  0.75VTWO Vanguard Russell 2000PairCorr
  0.99FNDA Schwab Fundamental SmallPairCorr
  0.73SPSM SPDR Portfolio SPPairCorr
  0.74DFAS Dimensional Small CapPairCorr
  0.74VIOO Vanguard SP SmallPairCorr
  0.75PRFZ Invesco FTSE RAFIPairCorr
  0.94VTI Vanguard Total StockPairCorr
  0.92SPY SPDR SP 500PairCorr
  0.92IVV iShares Core SPPairCorr
  0.95VUG Vanguard Growth IndexPairCorr
  0.87VO Vanguard Mid CapPairCorr
  0.83MSFT MicrosoftPairCorr
  0.71BA BoeingPairCorr
  0.77CAT CaterpillarPairCorr
  0.88BAC Bank of AmericaPairCorr
  0.89HD Home DepotPairCorr
  0.78DIS Walt DisneyPairCorr

Moving against IShares Etf

  0.68BND Vanguard Total BondPairCorr
  0.54VEA Vanguard FTSE DevelopedPairCorr
  0.34GDXU MicroSectors Gold MinersPairCorr
  0.75VZ Verizon CommunicationsPairCorr
  0.72JNJ Johnson JohnsonPairCorr
  0.72TRV The Travelers CompaniesPairCorr
  0.62T ATT Inc Earnings Call TodayPairCorr
  0.42PG Procter GamblePairCorr
  0.38XOM Exxon Mobil CorpPairCorr
  0.31INTC IntelPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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   
SPY
+ 0.9
DIA
XLF
+ 0.83
DIA
TLT
+ 0.75
EEM
SPY
+ 0.65
XLF
XLF
+ 0.3
EEM
TLT
+ 0.21
XLF
  
High negative correlations   
TLT
- 0.36
SPY
SPY
- 0.2
EEM
TLT
- 0.15
DIA
EEM
- 0.04
DIA

IShares Russell Constituents Risk-Adjusted Indicators

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

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY