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

0.97	VTI	Vanguard Total Stock	Pair Corr
0.95	SPY	SPDR SP 500	Pair Corr
0.95	IVV	iShares Core SP	Pair Corr
0.69	VIG	Vanguard Dividend	Pair Corr
0.95	VV	Vanguard Large Cap	Pair Corr
0.64	RSP	Invesco SP 500	Pair Corr
0.96	IWB	iShares Russell 1000	Pair Corr
0.97	ESGU	iShares ESG Aware	Pair Corr
0.85	DFAC	Dimensional Core Equity	Pair Corr
0.95	SPLG	SPDR Portfolio SP	Pair Corr
0.61	RXI	iShares Global Consumer	Pair Corr

Moving against Main Etf

0.4

PFE

Pfizer Inc

Pair Corr

Related Correlations Analysis

	TMAT	XLSR	SMMV	QUS	SMLF
TMAT		0.82	0.3	0.53	0.5	TMAT
XLSR	0.82		0.54	0.81	0.63	XLSR
SMMV	0.3	0.54		0.69	0.92	SMMV
QUS	0.53	0.81	0.69		0.6	QUS
SMLF	0.5	0.63	0.92	0.6		SMLF
	TMAT	XLSR	SMMV	QUS	SMLF

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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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
TMAT	1.64	(0.02)	0.00	(0.06)	0.00	0.00	2.60	(3.79)	9.46
XLSR	0.67	0.01	0.02	(0.01)	0.99	(0.66)	1.28	(1.48)	4.36
SMMV	0.53	(0.04)	0.00	(0.09)	0.00	0.00	1.01	(1.08)	3.72
QUS	0.44	0.03	0.06	0.03	0.62	(0.47)	0.88	(0.91)	3.07
SMLF	0.86	(0.09)	0.00	(0.13)	0.00	0.00	1.52	(1.70)	6.01

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