Materials Select Correlations

XLB Etf

USD 85.79 0.86 0.99%

The current 90-days correlation between Materials Select Sector and Industrial Select Sector is 0.05 (i.e., Significant diversification). The correlation of Materials Select 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.

Materials Select Correlation With Market

Good diversification

The correlation between Materials Select Sector and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Materials Select Sector 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 Materials Select Sector. 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 economic analysis.

Moving together with Materials Etf

0.89	VAW	Vanguard Materials Index	Pair Corr
0.71	PHO	Invesco Water Resources	Pair Corr
0.74	MOO	VanEck Agribusiness ETF	Pair Corr
0.77	FXZ	First Trust Materials	Pair Corr
0.73	FIW	First Trust Water	Pair Corr
0.87	IYM	iShares Basic Materials	Pair Corr
0.62	SIXD	AIM ETF Products	Pair Corr
0.81	CEFD	ETRACS Monthly Pay	Pair Corr
0.65	CSCO	Cisco Systems	Pair Corr
0.68	GE	GE Aerospace	Pair Corr
0.77	JPM	JPMorgan Chase	Pair Corr
0.64	DD	Dupont De Nemours	Pair Corr
0.67	WMT	Walmart	Pair Corr

Related Correlations Analysis

	XLI	XLY	XLP	XLU	XLV
XLI		0.55	-0.21	0.5	0.27	XLI
XLY	0.55		-0.33	-0.24	-0.43	XLY
XLP	-0.21	-0.33		0.28	0.52	XLP
XLU	0.5	-0.24	0.28		0.68	XLU
XLV	0.27	-0.43	0.52	0.68		XLV
	XLI	XLY	XLP	XLU	XLV

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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

XLV	+ 0.68	XLU
XLY	+ 0.55	XLI
XLV	+ 0.52	XLP
XLU	+ 0.5	XLI
XLU	+ 0.28	XLP
XLV	+ 0.27	XLI

High negative correlations

XLV	- 0.43	XLY
XLP	- 0.33	XLY
XLU	- 0.24	XLY
XLP	- 0.21	XLI

Materials Select Constituents Risk-Adjusted Indicators

There is a big difference between Materials Etf performing well and Materials Select 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 Materials Select'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
XLI	0.80	0.00	0.00	(0.04)	0.00	0.00	1.54	(1.56)	4.25
XLY	1.05	(0.27)	0.00	0.93	0.00	0.00	2.02	(2.54)	6.11
XLP	0.68	(0.05)	0.00	0.42	0.00	0.00	1.33	(1.56)	4.88
XLU	0.83	0.04	0.06	0.09	1.05	(0.87)	1.86	(2.16)	4.84
XLV	0.65	0.10	0.17	0.18	0.57	(0.69)	1.30	(1.09)	3.34

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