IShares Trust Correlations

ITDC Etf   30.67  0.15  0.49%   
The current 90-days correlation between iShares Trust and PIMCO Mortgage Backed Securities is 0.54 (i.e., Very weak diversification). The correlation of IShares Trust 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.

IShares Trust Correlation With Market

Very weak diversification

The correlation between iShares Trust and DJI is 0.42 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Trust and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in iShares Trust. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in unemployment.
For information on how to trade IShares Etf refer to our How to Trade IShares Etf guide.

Moving together with IShares Etf

  0.62FDV First Trust CapitalPairCorr
  0.86TRND Pacer TrendpilotPairCorr
  0.88PSCD Invesco SP SmallCapPairCorr
  0.67LTL ProShares Ultra TelePairCorr
  0.62XLC Communication ServicesPairCorr
  0.64JULW AIM ETF ProductsPairCorr
  0.82VOO Vanguard SP 500PairCorr
  0.68DMAY First Trust ExchangePairCorr
  0.72YALL God Bless AmericaPairCorr
  0.81SPYX SPDR SP 500PairCorr
  0.75AHYB American Century ETFPairCorr
  0.75ODDS Pacer BlueStar DigitalPairCorr

Related Correlations Analysis

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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   
MSTSXAQUI
OSHDFVIASP
RRTLXPMBS
RRTLXMSTSX
RRTLXWGMI
RRTLXAQUI
  
High negative correlations   
OSHDFAQUI
OSHDFMSTSX
VIASPAQUI
VIASPMSTSX
MSTSXAMPD
AQUIAMPD

IShares Trust Constituents Risk-Adjusted Indicators

There is a big difference between IShares Etf performing well and IShares Trust 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 Trust'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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
PMBS  0.25 (0.02)(0.29)(0.05) 0.31 
 0.61 
 1.76 
WGMI  4.70  0.16  0.02  0.45  5.69 
 10.91 
 38.52 
AMPD  1.08  0.00 (0.04) 0.09  1.76 
 2.41 
 10.88 
AQUI  2.79 (1.41) 0.00  12.41  0.00 
 0.00 
 93.33 
MSTSX  0.56 (0.10) 0.00  3.70  0.00 
 0.97 
 7.06 
LBHIX  0.14  0.02 (0.23) 1.41  0.00 
 0.48 
 1.19 
VIASP  0.65  0.18  0.12  4.77  0.52 
 1.40 
 5.04 
RRTLX  0.25 (0.02)(0.21)(0.01) 0.36 
 0.57 
 2.04 
OSHDF  46.68  25.61  0.00 (1.40) 0.00 
 0.00 
 1,329 
70082LAB3  0.66  0.10  0.01  0.94  0.81 
 1.78 
 6.86