IShares Dow Correlations

IYY Etf  USD 144.82  2.19  1.54%   
The current 90-days correlation between iShares Dow Jones and iShares Industrials ETF is 0.8 (i.e., Very poor diversification). The correlation of IShares Dow 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 Dow Correlation With Market

Very weak diversification

The correlation between iShares Dow Jones and DJI is 0.54 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Dow Jones 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 Dow Jones. 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

  1.0VTI Vanguard Total StockPairCorr
  0.99SPY SPDR SP 500PairCorr
  0.99IVV iShares Core SPPairCorr
  0.83VIG Vanguard DividendPairCorr
  0.99VV Vanguard Large CapPairCorr
  0.73RSP Invesco SP 500PairCorr
  1.0IWB iShares Russell 1000PairCorr
  0.99ESGU iShares ESG AwarePairCorr
  0.89DFAC Dimensional Core EquityPairCorr
  0.99SPLG SPDR Portfolio SPPairCorr
  0.67RXI iShares Global ConsumerPairCorr
  0.61AXP American ExpressPairCorr

Moving against IShares Etf

  0.34MRK Merck Company Aggressive PushPairCorr
  0.31PFE Pfizer IncPairCorr

Related Correlations Analysis

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IShares Dow Constituents Risk-Adjusted Indicators

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