IShares Financial Correlations

IYG Etf

USD 79.85 0.34 0.42%

The current 90-days correlation between iShares Financial and iShares Financials ETF is 0.99 (i.e., No risk reduction). The correlation of IShares Financial 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 Financial Correlation With Market

Poor diversification

The correlation between iShares Financial Services and DJI is 0.79 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Financial Services 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 Financial Services. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in manufacturing.

Moving together with IShares Etf

0.97	XLF	Financial Select Sector Aggressive Push	Pair Corr
1.0	VFH	Vanguard Financials Index	Pair Corr
0.88	KRE	SPDR SP Regional Aggressive Push	Pair Corr
0.91	KBE	SPDR SP Bank	Pair Corr
0.99	IYF	iShares Financials ETF	Pair Corr
1.0	FNCL	Fidelity MSCI Financials	Pair Corr
0.92	FXO	First Trust Financials	Pair Corr
0.78	IAT	iShares Regional Banks	Pair Corr
0.86	MPAY	Akros Monthly Payout	Pair Corr
0.92	CPST	Calamos ETF Trust	Pair Corr
0.76	AXP	American Express	Pair Corr
0.83	WMT	Walmart	Pair Corr
0.93	JPM	JPMorgan Chase	Pair Corr
0.61	GE	GE Aerospace	Pair Corr

Moving against IShares Etf

0.47	BITI	ProShares Trust	Pair Corr
0.55	MRK	Merck Company	Pair Corr

Related Correlations Analysis

	IYF	IYC	IYJ	IYK	IYM
IYF		0.63	0.85	0.03	0.8	IYF
IYC	0.63		0.88	-0.57	0.22	IYC
IYJ	0.85	0.88		-0.37	0.57	IYJ
IYK	0.03	-0.57	-0.37		0.39	IYK
IYM	0.8	0.22	0.57	0.39		IYM
	IYF	IYC	IYJ	IYK	IYM

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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

IYJ	+ 0.88	IYC
IYJ	+ 0.85	IYF
IYM	+ 0.8	IYF
IYC	+ 0.63	IYF
IYM	+ 0.57	IYJ
IYM	+ 0.39	IYK

High negative correlations

IYK	- 0.57	IYC
IYK	- 0.37	IYJ

IShares Financial Constituents Risk-Adjusted Indicators

There is a big difference between IShares Etf performing well and IShares Financial 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 Financial'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
IYF	0.85	0.03	0.02	0.03	1.28	(0.80)	1.88	(2.51)	6.03
IYC	0.95	(0.16)	0.00	(0.13)	0.00	0.00	1.81	(2.58)	5.06
IYJ	0.83	(0.06)	0.00	(0.05)	0.00	0.00	1.44	(1.77)	4.22
IYK	0.71	0.04	0.04	0.16	1.03	(0.62)	1.34	(1.58)	4.71
IYM	0.78	0.01	0.01	0.02	1.05	(0.78)	1.43	(1.89)	5.06

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