Main Sector Correlations

SECT Etf  USD 53.80  1.11  2.02%   
The current 90-days correlation between Main Sector Rotation and Main Thematic Innovation is 0.85 (i.e., Very poor diversification). The correlation of Main Sector 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.

Main Sector Correlation With Market

Very weak diversification

The correlation between Main Sector Rotation and DJI is 0.45 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Main Sector Rotation and DJI in the same portfolio, assuming nothing else is changed.
  
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Main Sector Rotation. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Moving together with Main Etf

  0.97VTI Vanguard Total StockPairCorr
  0.95SPY SPDR SP 500PairCorr
  0.95IVV iShares Core SPPairCorr
  0.69VIG Vanguard DividendPairCorr
  0.95VV Vanguard Large CapPairCorr
  0.64RSP Invesco SP 500PairCorr
  0.96IWB iShares Russell 1000PairCorr
  0.97ESGU iShares ESG AwarePairCorr
  0.85DFAC Dimensional Core EquityPairCorr
  0.95SPLG SPDR Portfolio SPPairCorr
  0.61RXI iShares Global ConsumerPairCorr

Moving against Main Etf

  0.4PFE Pfizer IncPairCorr

Related Correlations Analysis

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Main Sector Constituents Risk-Adjusted Indicators

There is a big difference between Main Etf performing well and Main Sector 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 Main Sector'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.