Real Estate Correlations

XLRE Etf

USD 41.51 0.41 0.98%

The current 90-days correlation between Real Estate and Communication Services Select is -0.01 (i.e., Good diversification). The correlation of Real Estate 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.

Real Estate Correlation With Market

Very good diversification

The correlation between The Real Estate and DJI is -0.21 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding The Real Estate 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 The Real Estate. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Moving together with Real Etf

0.99	VNQ	Vanguard Real Estate	Pair Corr
1.0	IYR	iShares Real Estate	Pair Corr
0.99	ICF	iShares Cohen Steers	Pair Corr
0.96	USRT	iShares Core REIT	Pair Corr
0.66	IRET	iREIT MarketVector	Pair Corr
0.96	RWR	SPDR Dow Jones	Pair Corr
0.64	MAPP	Harbor ETF Trust	Pair Corr
0.81	HART	IQ Healthy Hearts	Pair Corr
0.78	SNPD	DBX ETF Trust	Pair Corr
0.66	IBM	International Business	Pair Corr
0.71	MCD	McDonalds	Pair Corr
0.71	JNJ	Johnson Johnson	Pair Corr
0.71	VZ	Verizon Communications	Pair Corr
0.75	PG	Procter Gamble	Pair Corr
0.7	KO	Coca Cola	Pair Corr
0.64	CSCO	Cisco Systems	Pair Corr

Moving against Real Etf

0.56	MRK	Merck Company	Pair Corr
0.36	MSFT	Microsoft	Pair Corr

Related Correlations Analysis

	XLC	XLB	XLI	XLY	XLP
XLC		0.77	0.67	0.39	0.39	XLC
XLB	0.77		0.75	0.23	0.36	XLB
XLI	0.67	0.75		0.61	-0.19	XLI
XLY	0.39	0.23	0.61		-0.38	XLY
XLP	0.39	0.36	-0.19	-0.38		XLP
	XLC	XLB	XLI	XLY	XLP

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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

XLB	+ 0.77	XLC
XLI	+ 0.75	XLB
XLI	+ 0.67	XLC
XLY	+ 0.61	XLI
XLY	+ 0.39	XLC
XLP	+ 0.39	XLC

High negative correlations

XLP	- 0.38	XLY
XLP	- 0.19	XLI

Real Estate Constituents Risk-Adjusted Indicators

There is a big difference between Real Etf performing well and Real Estate 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 Real Estate'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	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
XLC	0.81	(0.03)	(0.11)	1.29	(1.79)	4.14
XLB	0.78	(0.06)	50.44	1.31	(1.83)	4.69
XLI	0.77	0.01	(0.06)	1.38	(1.56)	4.25
XLY	1.05	(0.19)	(0.26)	2.02	(2.54)	6.11
XLP	0.68	(0.04)	0.34	1.33	(1.56)	4.88

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