| SMHB Etf | | | USD 5.94 0.21 3.66% |
The current 90-days correlation between ETRACS 2xMonthly Pay and Direxion Daily SP is -0.4 (i.e., Very good diversification). The correlation of ETRACS 2xMonthly 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.
ETRACS 2xMonthly Correlation With Market
Very weak diversification
The correlation between ETRACS 2xMonthly Pay and DJI is 0.41 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ETRACS 2xMonthly Pay and DJI in the same portfolio, assuming nothing else is changed.
Check out
World Market Map to better understand how to build diversified portfolios, which includes a position in ETRACS 2xMonthly Pay. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in rate.
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 | | High negative correlations |
ETRACS 2xMonthly Constituents Risk-Adjusted IndicatorsThere is a big difference between ETRACS Etf performing well and ETRACS 2xMonthly 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 ETRACS 2xMonthly'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.