Energy Select Correlations

XLE Etf

USD 96.34 0.96 1.01%

The current 90-days correlation between Energy Select Sector and Financial Select Sector is 0.43 (i.e., Very weak diversification). The correlation of Energy Select 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.

Energy Select Correlation With Market

Very weak diversification

The correlation between Energy Select Sector and DJI is 0.49 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Energy Select Sector 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 Energy Select Sector. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Moving together with Energy Etf

1.0	VDE	Vanguard Energy Index	Pair Corr
0.94	XOP	SPDR SP Oil	Pair Corr
0.71	OIH	VanEck Oil Services	Pair Corr
1.0	IYE	iShares Energy ETF	Pair Corr
0.91	IXC	iShares Global Energy	Pair Corr
0.88	FXN	First Trust Energy	Pair Corr
1.0	FENY	Fidelity MSCI Energy	Pair Corr
0.97	FTXN	First Trust Nasdaq	Pair Corr
0.92	IEO	iShares Oil Gas Low Volatility	Pair Corr
0.76	SIXD	AIM ETF Products	Pair Corr
0.73	TSJA	TSJA	Pair Corr
0.7	DSJA	DSJA	Pair Corr
0.76	PPA	Invesco Aerospace Defense	Pair Corr
0.76	SPY	SPDR SP 500	Pair Corr
0.73	CSCO	Cisco Systems	Pair Corr
0.74	DIS	Walt Disney Aggressive Push	Pair Corr
0.73	INTC	Intel Fiscal Year End 23rd of January 2025	Pair Corr
0.87	XOM	Exxon Mobil Corp Aggressive Push	Pair Corr
0.61	HD	Home Depot	Pair Corr
0.73	HPQ	HP Inc	Pair Corr
0.66	CAT	Caterpillar Fiscal Year End 3rd of February 2025	Pair Corr
0.75	JPM	JPMorgan Chase Fiscal Year End 10th of January 2025	Pair Corr
0.77	AXP	American Express Fiscal Year End 24th of January 2025	Pair Corr

Moving against Energy Etf

0.76	YCL	ProShares Ultra Yen	Pair Corr
0.75	ULE	ProShares Ultra Euro	Pair Corr
0.75	FXY	Invesco CurrencyShares	Pair Corr
0.69	VIIX	VIIX	Pair Corr
0.71	MRK	Merck Company Fiscal Year End 6th of February 2025	Pair Corr
0.69	PFE	Pfizer Inc Fiscal Year End 4th of February 2025	Pair Corr
0.56	PG	Procter Gamble	Pair Corr
0.52	BA	Boeing Fiscal Year End 29th of January 2025	Pair Corr

Related Correlations Analysis

	XLF	XLV	XLK	XLU	XLI
XLF		-0.8	0.73	0.44	0.86	XLF
XLV	-0.8		-0.57	-0.35	-0.63	XLV
XLK	0.73	-0.57		0.52	0.88	XLK
XLU	0.44	-0.35	0.52		0.69	XLU
XLI	0.86	-0.63	0.88	0.69		XLI
	XLF	XLV	XLK	XLU	XLI

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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

XLI	+ 0.88	XLK
XLI	+ 0.86	XLF
XLK	+ 0.73	XLF
XLI	+ 0.69	XLU
XLU	+ 0.52	XLK
XLU	+ 0.44	XLF

High negative correlations

XLV	- 0.8	XLF
XLI	- 0.63	XLV
XLK	- 0.57	XLV
XLU	- 0.35	XLV

Energy Select Constituents Risk-Adjusted Indicators

There is a big difference between Energy Etf performing well and Energy Select 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 Energy Select'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
XLF	0.72	0.08	0.13	0.15	0.56	(0.80)	1.50	(1.23)	7.69
XLV	0.52	(0.16)	0.00	(0.24)	0.00	0.00	0.73	(1.37)	2.88
XLK	1.03	(0.05)	(0.02)	0.04	1.54	(1.03)	1.87	(2.48)	6.62
XLU	0.76	0.10	0.03	0.68	0.84	(0.82)	1.50	(1.48)	4.95
XLI	0.65	0.04	0.06	0.12	0.59	(0.74)	1.67	(1.16)	5.60

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