| THRO Etf | | | 35.08 0.36 1.04% |
The current 90-days correlation between iShares Thematic Rotation and Vanguard SP 500 is 0.96 (i.e., Almost no diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as IShares Thematic moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if iShares Thematic Rotation moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
IShares Thematic Correlation With Market
Poor diversification
The correlation between iShares Thematic Rotation and DJI is 0.74 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Thematic Rotation 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 iShares Thematic Rotation. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in metropolitan statistical area.
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 |
IShares Thematic Constituents Risk-Adjusted IndicatorsThere is a big difference between IShares Etf performing well and IShares Thematic 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 Thematic'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.