SPDR SP Correlations

XHB Etf

USD 97.42 1.40 1.42%

The current 90-days correlation between SPDR SP Homebuilders and iShares Home Construction is 0.97 (i.e., Almost no diversification). The correlation of SPDR SP 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.

SPDR SP Correlation With Market

Poor diversification

The correlation between SPDR SP Homebuilders and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP Homebuilders and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in SPDR SP Homebuilders. 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.

Moving together with SPDR Etf

0.88	XLY	Consumer Discretionary	Pair Corr
0.88	VCR	Vanguard Consumer	Pair Corr
0.99	ITB	iShares Home Construction	Pair Corr
0.88	FDIS	Fidelity MSCI Consumer	Pair Corr
0.81	IYC	iShares Consumer Dis	Pair Corr
0.85	FXD	First Trust Consumer	Pair Corr
0.85	XRT	SPDR SP Retail	Pair Corr
0.63	SWP	SWP Growth Income	Pair Corr
0.77	WINN	Harbor Long Term	Pair Corr
0.71	AA	Alcoa Corp	Pair Corr
0.91	CAT	Caterpillar	Pair Corr
0.74	BAC	Bank of America	Pair Corr
0.81	AXP	American Express	Pair Corr
0.64	DIS	Walt Disney	Pair Corr
0.88	HD	Home Depot	Pair Corr
0.66	HPQ	HP Inc	Pair Corr

Moving against SPDR Etf

0.72	FNGD	MicroSectors FANG Index	Pair Corr
0.69	SHLD	Global X Funds	Pair Corr
0.32	XOM	Exxon Mobil Corp	Pair Corr
0.69	JNJ	Johnson Johnson	Pair Corr
0.69	KO	Coca Cola	Pair Corr
0.66	VZ	Verizon Communications	Pair Corr
0.65	T	ATT Inc Earnings Call Tomorrow	Pair Corr
0.37	PG	Procter Gamble	Pair Corr

Related Correlations Analysis

	ITB	XRT	XLB	XLI	XME
ITB		0.84	0.3	0.53	0.52	ITB
XRT	0.84		0.15	0.44	0.52	XRT
XLB	0.3	0.15		0.73	0.72	XLB
XLI	0.53	0.44	0.73		0.74	XLI
XME	0.52	0.52	0.72	0.74		XME
	ITB	XRT	XLB	XLI	XME

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SPDR SP Constituents Risk-Adjusted Indicators

There is a big difference between SPDR Etf performing well and SPDR SP 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 SPDR SP'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	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
ITB	1.26	(0.19)	(0.27)	2.53	(2.60)	5.99
XRT	0.99	(0.21)	(0.29)	1.45	(2.23)	4.94
XLB	0.78	(0.01)	(0.08)	1.31	(1.83)	4.69
XLI	0.76	(0.01)	(0.37)	1.38	(1.54)	4.24
XME	1.29	(0.05)	(0.12)	3.02	(3.31)	8.03

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