IShares Dow Correlations

IYY Etf

USD 147.55 1.30 0.89%

The current 90-days correlation between iShares Dow Jones and iShares Industrials ETF is 0.83 (i.e., Very poor diversification). The correlation of IShares Dow 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 Dow Correlation With Market

Poor diversification

The correlation between iShares Dow Jones and DJI is 0.63 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Dow Jones 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 Dow Jones. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in manufacturing.

Moving together with IShares Etf

1.0	VTI	Vanguard Total Stock	Pair Corr
1.0	SPY	SPDR SP 500 Aggressive Push	Pair Corr
1.0	IVV	iShares Core SP	Pair Corr
0.82	VIG	Vanguard Dividend	Pair Corr
1.0	VV	Vanguard Large Cap	Pair Corr
0.67	RSP	Invesco SP 500	Pair Corr
1.0	IWB	iShares Russell 1000	Pair Corr
1.0	ESGU	iShares ESG Aware	Pair Corr
0.91	DFAC	Dimensional Core Equity	Pair Corr
1.0	SPLG	SPDR Portfolio SP	Pair Corr
0.76	GBTC	Grayscale Bitcoin Trust	Pair Corr
0.67	MLPR	ETRACS Quarterly Pay	Pair Corr
0.67	ATMP	Barclays ETN Select Low Volatility	Pair Corr

Moving against IShares Etf

0.4

PFE

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Pair Corr

Related Correlations Analysis

	IWV	IYJ	IYC	IYK	IWB
IWV		0.77	0.85	0.2	1.0	IWV
IYJ	0.77		0.4	0.61	0.73	IYJ
IYC	0.85	0.4		-0.18	0.88	IYC
IYK	0.2	0.61	-0.18		0.15	IYK
IWB	1.0	0.73	0.88	0.15		IWB
	IWV	IYJ	IYC	IYK	IWB

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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

IWB	+ 1.0	IWV
IWB	+ 0.88	IYC
IYC	+ 0.85	IWV
IYJ	+ 0.77	IWV
IWB	+ 0.73	IYJ
IYK	+ 0.61	IYJ

High negative correlations

IYK

- 0.18

IYC

IShares Dow Constituents Risk-Adjusted Indicators

There is a big difference between IShares Etf performing well and IShares Dow 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 Dow'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
IWV	0.61	0.06	0.05	0.11	0.89	(0.62)	1.29	(1.33)	5.90
IYJ	0.70	0.04	0.04	0.08	0.82	(0.79)	1.37	(1.10)	7.37
IYC	0.76	0.20	0.19	0.32	0.75	(0.88)	1.65	(1.26)	6.03
IYK	0.53	(0.11)	0.00	(1.05)	0.00	0.00	0.88	(1.18)	3.00
IWB	0.62	0.07	0.05	0.24	0.88	(0.60)	1.30	(1.49)	5.71

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