IShares Europe Correlations

DFEU Etf

5.95 0.05 0.85%

The current 90-days correlation between iShares Europe Defence and iShares Dow Jones is 0.37 (i.e., Weak diversification). The correlation of IShares Europe 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.

IShares Europe Correlation With Market

Poor diversification

The correlation between iShares Europe Defence and DJI is 0.78 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Europe Defence and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to IShares Europe could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace IShares Europe when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back IShares Europe - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling iShares Europe Defence to buy it.

Moving together with IShares Etf

0.84	WMAT	SPDR MSCI World	Pair Corr
0.83	WIND	SPDR MSCI World	Pair Corr
0.72	DIA	SPDR Dow Jones	Pair Corr
0.87	EMIM	iShares Core MSCI	Pair Corr
0.87	VWRL	Vanguard FTSE All	Pair Corr
0.76	CNYB	iShares China CNY	Pair Corr
0.86	IMEU	iShares Core MSCI	Pair Corr
0.79	IWRD	iShares MSCI World	Pair Corr
0.88	IEMM	iShares MSCI EM	Pair Corr
0.73	WHCS	iShares MSCI World	Pair Corr
0.83	IKRA	iShares Public	Pair Corr
0.84	DJMC	iShares EURO STOXX	Pair Corr
0.66	CALF	Pacer Small Cap	Pair Corr
0.61	TAT	VanEck iBoxx EUR	Pair Corr
0.8	ERNE	iShares Euro Ultrashort	Pair Corr
0.87	IEUX	iShares MSCI Europe	Pair Corr
0.69	NTM	VanEck Multi Asset	Pair Corr
0.91	TDT	VanEck AEX UCITS	Pair Corr
0.82	RTWO	LG Russell 2000	Pair Corr
0.87	IEMA	iShares MSCI EM	Pair Corr
0.82	SMUA	iShares MSCI EMU	Pair Corr
0.64	IEAC	iShares Core Corp	Pair Corr
0.76	LCJP	Amundi MSCI Japan	Pair Corr
0.85	DJSC	iShares EURO STOXX	Pair Corr
0.85	VEVE	Vanguard FTSE Developed	Pair Corr
0.71	LTAM	iShares MSCI EM	Pair Corr
0.88	IMAE	iShares Core MSCI	Pair Corr
0.86	PHAG	WisdomTree Physical	Pair Corr
0.86	V80A	Vanguard LifeStrategy	Pair Corr
0.69	TDIV	VanEck Morningstar	Pair Corr
0.76	CYBA	iShares China CNY	Pair Corr

Related Correlations Analysis

	EXCD	IEGZ	EMIM	IFRB	ISFA	STEC	SUOU	MPAB	IGSG
EXCD		0.71	0.98	0.8	0.96	0.47	0.67	0.9	0.83	EXCD
IEGZ	0.71		0.73	0.98	0.62	0.1	0.66	0.5	0.47	IEGZ
EMIM	0.98	0.73		0.8	0.95	0.55	0.62	0.89	0.86	EMIM
IFRB	0.8	0.98	0.8		0.7	0.12	0.66	0.56	0.5	IFRB
ISFA	0.96	0.62	0.95	0.7		0.53	0.69	0.96	0.89	ISFA
STEC	0.47	0.1	0.55	0.12	0.53		0.12	0.64	0.78	STEC
SUOU	0.67	0.66	0.62	0.66	0.69	0.12		0.66	0.58	SUOU
MPAB	0.9	0.5	0.89	0.56	0.96	0.64	0.66		0.95	MPAB
IGSG	0.83	0.47	0.86	0.5	0.89	0.78	0.58	0.95		IGSG
	EXCD	IEGZ	EMIM	IFRB	ISFA	STEC	SUOU	MPAB	IGSG

IShares Europe Constituents Risk-Adjusted Indicators

There is a big difference between IShares Etf performing well and IShares Europe 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 IShares Europe'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
EXCD	0.76	0.26	0.24	(7.24)	0.55	(0.94)	1.82	(1.37)	3.52
IEGZ	0.20	0.02	(0.13)	(3.67)	0.22	(0.22)	0.44	(0.48)	1.36
EMIM	0.60	0.16	0.15	(1.56)	0.43	(0.74)	1.41	(0.94)	3.20
IFRB	0.13	0.01	(0.24)	1.92	0.07	(0.13)	0.30	(0.31)	0.73
ISFA	0.48	0.16	0.14	(1.47)	0.42	(0.58)	1.21	(0.93)	3.01
STEC	1.10	0.06	0.00	(0.20)	1.60	(1.09)	2.28	(2.42)	8.31
SUOU	0.14	0.02	(0.09)	1.69	0.00	(0.30)	0.46	(0.23)	1.39
MPAB	0.52	0.08	0.05	1.40	0.45	(0.66)	1.19	(0.81)	2.62
IGSG	0.45	0.05	(0.01)	(0.80)	0.55	(0.48)	0.97	(0.98)	3.12

Be your own money manager

Our tools can tell you how much better you can do entering a position in IShares Europe without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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