IShares Basic Correlations

IYM Etf

USD 138.23 0.69 0.50%

The current 90-days correlation between iShares Basic Materials and iShares Industrials ETF is 0.72 (i.e., Poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as IShares Basic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if iShares Basic Materials moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

IShares Basic Correlation With Market

Very weak diversification

The correlation between iShares Basic Materials and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Basic Materials 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 Basic Materials. 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

0.99	XLB	Materials Select Sector	Pair Corr
0.99	VAW	Vanguard Materials Index	Pair Corr
0.91	XME	SPDR SP Metals	Pair Corr
0.87	PHO	Invesco Water Resources	Pair Corr
0.87	MOO	VanEck Agribusiness ETF	Pair Corr
0.92	FXZ	First Trust Materials	Pair Corr
0.88	FIW	First Trust Water	Pair Corr
0.65	BAC	Bank of America	Pair Corr
0.61	PG	Procter Gamble	Pair Corr
0.65	XOM	Exxon Mobil Corp	Pair Corr
0.64	TRV	The Travelers Companies	Pair Corr
0.8	CVX	Chevron Corp	Pair Corr

Moving against IShares Etf

0.43

PFE

Pfizer Inc Aggressive Push

Pair Corr

Related Correlations Analysis

	IYJ	IYC	IYK	IYZ	IDU
IYJ		0.66	0.52	0.66	0.75	IYJ
IYC	0.66		-0.12	0.24	0.06	IYC
IYK	0.52	-0.12		0.61	0.72	IYK
IYZ	0.66	0.24	0.61		0.79	IYZ
IDU	0.75	0.06	0.72	0.79		IDU
	IYJ	IYC	IYK	IYZ	IDU

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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

IDU	+ 0.79	IYZ
IDU	+ 0.75	IYJ
IDU	+ 0.72	IYK
IYC	+ 0.66	IYJ
IYZ	+ 0.66	IYJ
IYZ	+ 0.61	IYK

High negative correlations

IYK

- 0.12

IYC

IShares Basic Constituents Risk-Adjusted Indicators

There is a big difference between IShares Etf performing well and IShares Basic 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 Basic'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
IYJ	0.66	(0.09)	0.00	(0.13)	0.00	0.00	1.37	(1.78)	3.99
IYC	0.69	0.03	0.03	0.07	0.98	(0.69)	1.40	(1.33)	5.16
IYK	0.68	0.01	0.01	0.04	0.93	(0.61)	1.34	(1.59)	4.40
IYZ	0.66	0.03	0.02	0.08	1.19	(0.58)	1.39	(2.53)	4.82
IDU	0.70	(0.05)	0.00	(0.19)	0.00	0.00	1.50	(2.00)	4.34

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