Industrial Select Correlations

XLI Etf

USD 134.92 0.69 0.51%

The current 90-days correlation between Industrial Select Sector and Materials Select Sector is 0.19 (i.e., Average diversification). The correlation of Industrial 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.

Industrial Select Correlation With Market

Very weak diversification

The correlation between Industrial Select Sector and DJI is 0.55 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Industrial 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 Industrial 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 Industrial Etf

0.77	ITA	iShares Aerospace Defense	Pair Corr
0.98	VIS	Vanguard Industrials	Pair Corr
0.89	FXR	First Trust Industri	Pair Corr
0.85	PPA	Invesco Aerospace Defense	Pair Corr
0.98	IYJ	iShares Industrials ETF	Pair Corr
0.87	IYT	iShares Transportation	Pair Corr
0.98	FIDU	Fidelity MSCI Industrials	Pair Corr
0.68	UPRO	ProShares UltraPro SP500	Pair Corr
0.69	XOM	Exxon Mobil Corp	Pair Corr
0.71	TRV	The Travelers Companies	Pair Corr
0.77	BAC	Bank of America	Pair Corr
0.8	HD	Home Depot	Pair Corr
0.77	CVX	Chevron Corp	Pair Corr
0.66	DD	Dupont De Nemours	Pair Corr

Moving against Industrial Etf

0.41

Boeing

Pair Corr

Related Correlations Analysis

	XLB	XLY	XLP	XLV	XLU
XLB		-0.19	0.74	0.62	0.85	XLB
XLY	-0.19		-0.04	-0.08	-0.33	XLY
XLP	0.74	-0.04		0.44	0.65	XLP
XLV	0.62	-0.08	0.44		0.7	XLV
XLU	0.85	-0.33	0.65	0.7		XLU
	XLB	XLY	XLP	XLV	XLU

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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

XLU	+ 0.85	XLB
XLP	+ 0.74	XLB
XLU	+ 0.7	XLV
XLU	+ 0.65	XLP
XLV	+ 0.62	XLB
XLV	+ 0.44	XLP

High negative correlations

XLU	- 0.33	XLY
XLY	- 0.19	XLB
XLV	- 0.08	XLY
XLP	- 0.04	XLY

Industrial Select Constituents Risk-Adjusted Indicators

There is a big difference between Industrial Etf performing well and Industrial 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 Industrial 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
XLB	0.71	(0.06)	0.00	(0.46)	0.00	0.00	1.27	(1.31)	4.05
XLY	0.88	0.03	0.03	0.05	1.27	(0.89)	2.02	(1.94)	6.61
XLP	0.57	0.05	0.07	0.21	0.67	(0.59)	1.08	(1.17)	4.27
XLV	0.63	0.06	0.09	0.13	0.62	(0.69)	1.30	(1.19)	3.33
XLU	0.77	0.05	0.05	0.42	0.93	(0.83)	1.59	(2.15)	4.84

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