Energy Select Correlations

XLE Etf

USD 92.83 1.49 1.63%

The current 90-days correlation between Energy Select Sector and Financial Select Sector is 0.35 (i.e., 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

Good diversification

The correlation between Energy Select Sector and DJI is -0.16 (i.e., Good 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

0.96	VDE	Vanguard Energy Index	Pair Corr
0.67	XOP	SPDR SP Oil Sell-off Trend	Pair Corr
0.99	IYE	iShares Energy ETF	Pair Corr
0.98	IXC	iShares Global Energy	Pair Corr
0.71	FXN	First Trust Energy	Pair Corr
0.97	FENY	Fidelity MSCI Energy	Pair Corr
0.88	FTXN	First Trust Nasdaq	Pair Corr
0.89	IEO	iShares Oil Gas Low Volatility	Pair Corr

Moving against Energy Etf

0.35	PFE	Pfizer Inc Sell-off Trend	Pair Corr
0.32	PG	Procter Gamble	Pair Corr

Related Correlations Analysis

	XLF	XLV	XLK	XLU	XLI
XLF		0.48	0.41	0.66	0.81	XLF
XLV	0.48		-0.42	0.49	0.13	XLV
XLK	0.41	-0.42		0.03	0.63	XLK
XLU	0.66	0.49	0.03		0.48	XLU
XLI	0.81	0.13	0.63	0.48		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	+ 0.81	XLF
XLU	+ 0.66	XLF
XLI	+ 0.63	XLK
XLU	+ 0.49	XLV
XLV	+ 0.48	XLF
XLI	+ 0.48	XLU

High negative correlations

XLK

- 0.42

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	0.78	0.04	0.09	0.31	1.09	(0.80)	1.24	(1.65)	6.07
XLV	0.64	0.12	0.23	0.20	0.54	(0.70)	1.34	(1.09)	3.34
XLK	1.29	(0.20)	0.00	2.35	0.00	0.00	1.99	(3.04)	7.16
XLU	0.81	0.07	0.13	0.63	0.98	(0.88)	1.86	(2.08)	4.84
XLI	0.78	(0.02)	0.00	(0.38)	0.00	0.00	1.38	(1.54)	4.24

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