SPDR SP Correlations

XBI Etf

USD 100.00 1.15 1.16%

The current 90-days correlation between SPDR SP Biotech and iShares Biotechnology ETF is 0.95 (i.e., Almost no 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 Biotech and DJI is 0.65 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Biotech and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in SPDR SP Biotech. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Moving together with SPDR Etf

0.9	IBB	iShares Biotechnology ETF	Pair Corr
0.83	ARKG	ARK Genomic Revolution Low Volatility	Pair Corr

Moving against SPDR Etf

0.38	T	ATT Inc Aggressive Push	Pair Corr
0.31	CVX	Chevron Corp Sell-off Trend	Pair Corr

Related Correlations Analysis

	IBB	XLV	XLK	XLI	XLY
IBB		0.82	-0.28	-0.36	-0.52	IBB
XLV	0.82		-0.61	-0.67	-0.82	XLV
XLK	-0.28	-0.61		0.92	0.81	XLK
XLI	-0.36	-0.67	0.92		0.9	XLI
XLY	-0.52	-0.82	0.81	0.9		XLY
	IBB	XLV	XLK	XLI	XLY

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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

XLI	+ 0.92	XLK
XLY	+ 0.9	XLI
XLV	+ 0.82	IBB
XLY	+ 0.81	XLK

High negative correlations

XLY	- 0.82	XLV
XLI	- 0.67	XLV
XLK	- 0.61	XLV
XLY	- 0.52	IBB
XLI	- 0.36	IBB
XLK	- 0.28	IBB

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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
IBB	0.80	(0.20)	0.00	(0.08)	0.00	0.00	1.55	(1.70)	6.56
XLV	0.54	(0.16)	0.00	(0.18)	0.00	0.00	0.80	(1.37)	2.88
XLK	0.96	(0.04)	(0.02)	0.08	1.44	(0.98)	1.87	(2.48)	6.62
XLI	0.66	0.03	0.05	0.15	0.56	(0.75)	1.67	(1.16)	5.60
XLY	0.87	0.14	0.14	0.26	0.69	(1.01)	2.02	(1.53)	4.68

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