Health Care Correlations

XLV Etf

USD 147.41 0.46 0.31%

The current 90-days correlation between Health Care Select and Consumer Staples Select is -0.04 (i.e., Good diversification). The correlation of Health Care 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.

Health Care Correlation With Market

Poor diversification

The correlation between Health Care Select and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Health Care Select 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 Health Care Select. 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 Health Etf

1.0	VHT	Vanguard Health Care	Pair Corr
0.77	IBB	iShares Biotechnology ETF Sell-off Trend	Pair Corr
0.99	IXJ	iShares Global Healthcare	Pair Corr
1.0	IYH	iShares Healthcare ETF	Pair Corr
1.0	FHLC	Fidelity MSCI Health	Pair Corr
0.85	IHF	iShares Healthcare	Pair Corr
0.87	JNJ	Johnson Johnson Sell-off Trend	Pair Corr
0.94	MRK	Merck Company Fiscal Year End 6th of February 2025	Pair Corr
0.94	KO	Coca Cola Aggressive Push	Pair Corr

Moving against Health Etf

0.88	DSJA	DSJA	Pair Corr
0.88	MEME	Roundhill Investments	Pair Corr
0.87	RSPY	Tuttle Capital Management	Pair Corr
0.74	AXP	American Express Fiscal Year End 24th of January 2025	Pair Corr
0.54	IHI	iShares Medical Devices	Pair Corr
0.38	ITDD	iShares Trust	Pair Corr
0.85	CVX	Chevron Corp Sell-off Trend	Pair Corr
0.83	BAC	Bank of America Aggressive Push	Pair Corr
0.81	CSCO	Cisco Systems Sell-off Trend	Pair Corr
0.81	T	ATT Inc Fiscal Year End 22nd of January 2025	Pair Corr
0.78	AA	Alcoa Corp Fiscal Year End 15th of January 2025	Pair Corr
0.67	INTC	Intel Fiscal Year End 23rd of January 2025	Pair Corr
0.61	HPQ	HP Inc	Pair Corr
0.54	CAT	Caterpillar Fiscal Year End 3rd of February 2025	Pair Corr
0.53	HD	Home Depot	Pair Corr
0.46	XOM	Exxon Mobil Corp Fiscal Year End 7th of February 2025	Pair Corr

Related Correlations Analysis

	XLP	XLI	XLY	XLU	XLK
XLP		-0.48	-0.48	-0.02	-0.56	XLP
XLI	-0.48		0.91	0.69	0.93	XLI
XLY	-0.48	0.91		0.56	0.81	XLY
XLU	-0.02	0.69	0.56		0.62	XLU
XLK	-0.56	0.93	0.81	0.62		XLK
	XLP	XLI	XLY	XLU	XLK

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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

XLK	+ 0.93	XLI
XLY	+ 0.91	XLI
XLK	+ 0.81	XLY
XLU	+ 0.69	XLI
XLK	+ 0.62	XLU
XLU	+ 0.56	XLY

High negative correlations

XLK	- 0.56	XLP
XLY	- 0.48	XLP
XLI	- 0.48	XLP
XLU	- 0.02	XLP

Health Care Constituents Risk-Adjusted Indicators

There is a big difference between Health Etf performing well and Health Care 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 Health Care'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
XLP	0.50	0.00	(0.19)	0.06	0.63	(0.50)	0.79	(0.99)	2.42
XLI	0.67	0.03	0.05	0.15	0.55	(0.76)	1.67	(1.16)	5.60
XLY	0.87	0.16	0.16	0.28	0.67	(1.01)	2.02	(1.53)	4.68
XLU	0.78	0.13	0.02	0.82	0.81	(0.85)	1.74	(1.48)	4.95
XLK	0.96	(0.04)	(0.02)	0.09	1.44	(0.99)	1.87	(2.48)	6.62

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