PowerShares Preferred Correlations

PRFP Etf

1,113 11.20 1.00%

The current 90-days correlation between PowerShares Preferred and Leverage Shares 2x is -0.2 (i.e., Good diversification). The correlation of PowerShares Preferred 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.

PowerShares Preferred Correlation With Market

Very good diversification

The correlation between PowerShares Preferred Shares and DJI is -0.48 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PowerShares Preferred Shares and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to PowerShares Preferred could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PowerShares Preferred 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 PowerShares Preferred - 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 PowerShares Preferred Shares to buy it.

Moving against PowerShares Etf

0.72	IB01	iShares Treasury Bond	Pair Corr
0.65	UC87	UBSFund Solutions MSCI	Pair Corr
0.53	LPLA	WisdomTree Platinum	Pair Corr
0.5	GLD3	Leverage Shares 3x	Pair Corr
0.49	3GDE	Leverage Shares 3x	Pair Corr
0.49	GDX3	Leverage Shares 3x	Pair Corr
0.49	3GOL	WisdomTree Gold 3x	Pair Corr
0.49	SPAP	Source Physical Palladium	Pair Corr
0.48	LSIL	WisdomTree Silver	Pair Corr
0.44	3SIL	WisdomTree Silver	Pair Corr
0.43	3LSI	WisdomTree Silver	Pair Corr
0.43	CORP	iShares Global Corp	Pair Corr

Related Correlations Analysis

	VWCG	AAP2	AASG	AASU	1AMZ	2GOO	2AMD
VWCG		-0.66	0.57	0.79	0.22	0.6	-0.37	VWCG
AAP2	-0.66		-0.76	-0.83	-0.23	-0.21	-0.08	AAP2
AASG	0.57	-0.76		0.93	0.61	0.23	0.32	AASG
AASU	0.79	-0.83	0.93		0.47	0.34	0.12	AASU
1AMZ	0.22	-0.23	0.61	0.47		0.12	0.29	1AMZ
2GOO	0.6	-0.21	0.23	0.34	0.12		-0.64	2GOO
2AMD	-0.37	-0.08	0.32	0.12	0.29	-0.64		2AMD
	VWCG	AAP2	AASG	AASU	1AMZ	2GOO	2AMD

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

AASU	+ 0.93	AASG
AASU	+ 0.79	VWCG
1AMZ	+ 0.61	AASG
2GOO	+ 0.6	VWCG
AASG	+ 0.57	VWCG
1AMZ	+ 0.47	AASU

High negative correlations

AASU	- 0.83	AAP2
AASG	- 0.76	AAP2
AAP2	- 0.66	VWCG
2AMD	- 0.64	2GOO
2AMD	- 0.37	VWCG
1AMZ	- 0.23	AAP2

PowerShares Preferred Constituents Risk-Adjusted Indicators

There is a big difference between PowerShares Etf performing well and PowerShares Preferred 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 PowerShares Preferred'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
VWCG	0.50	0.09	0.09	0.26	0.42	(0.59)	1.25	(0.81)	3.61
AAP2	1.62	(0.10)	0.00	(0.16)	0.00	0.00	3.01	(4.25)	10.28
AASG	0.75	0.04	0.01	0.16	0.91	(0.77)	1.50	(1.54)	4.49
AASU	0.73	0.08	0.05	0.24	0.74	(0.77)	1.58	(1.45)	4.66
1AMZ	1.36	0.10	0.05	0.21	1.41	(1.44)	2.81	(2.41)	11.33
2GOO	2.70	0.74	0.27	1.31	2.26	(3.21)	6.78	(3.90)	16.77
2AMD	5.25	0.16	0.04	0.13	6.48	(5.78)	14.57	(11.03)	36.67

Be your own money manager

Our tools can tell you how much better you can do entering a position in PowerShares Preferred 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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