SPDR SP Correlations

KIE Etf  USD 59.33  0.37  0.62%   
The current 90-days correlation between SPDR SP Insurance and SPDR SP Capital is 0.7 (i.e., Poor diversification). The correlation of SPDR SP 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.

SPDR SP Correlation With Market

Poor diversification

The correlation between SPDR SP Insurance and DJI is 0.61 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Insurance and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in SPDR SP Insurance. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

Moving together with SPDR Etf

  0.82EUFN iShares MSCI EuropePairCorr
  0.84BND Vanguard Total Bond Sell-off TrendPairCorr
  0.8VEA Vanguard FTSE DevelopedPairCorr
  0.77VZ Verizon CommunicationsPairCorr
  0.74KO Coca ColaPairCorr
  0.83T ATT Inc Earnings Call This WeekPairCorr
  0.8JNJ Johnson JohnsonPairCorr
  0.71MMM 3M CompanyPairCorr
  0.67GE GE AerospacePairCorr
  0.85TRV The Travelers CompaniesPairCorr
  0.68MCD McDonaldsPairCorr

Moving against SPDR Etf

  0.42VUG Vanguard Growth IndexPairCorr
  0.56MSFT MicrosoftPairCorr
  0.54AA Alcoa CorpPairCorr
  0.5HPQ HP IncPairCorr
  0.44MRK Merck CompanyPairCorr

Related Correlations Analysis

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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   
IAIKBE
KBEKCE
IAIKCE
XPHIAI
XPHKBE
XPHKCE
  
High negative correlations   
IAKKCE
KBEIAK
IAIIAK

SPDR SP Constituents Risk-Adjusted Indicators

There is a big difference between SPDR Etf performing well and SPDR SP 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 SPDR SP'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.