Real Estate Correlations

XLRE Etf

USD 41.08 0.01 0.02%

The current 90-days correlation between Real Estate and Communication Services Select is 0.15 (i.e., Average diversification). The correlation of Real Estate 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.

Real Estate Correlation With Market

Modest diversification

The correlation between The Real Estate and DJI is 0.29 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding The Real Estate 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 The Real Estate. 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.

Moving together with Real Etf

1.0	VNQ	Vanguard Real Estate Sell-off Trend	Pair Corr
0.71	SITC	Site Centers Corp	Pair Corr
1.0	IYR	iShares Real Estate Sell-off Trend	Pair Corr
1.0	ICF	iShares Cohen Steers Low Volatility	Pair Corr
0.99	USRT	iShares Core REIT	Pair Corr
0.98	IRET	iREIT MarketVector	Pair Corr
0.69	NVDX	T Rex 2X Buyout Trend	Pair Corr

Moving against Real Etf

0.76	VCAR	Simplify Volt RoboCar Symbol Change	Pair Corr
0.64	TSLL	Direxion Shares ETF Buyout Trend	Pair Corr
0.58	WTID	UBS ETRACS	Pair Corr
0.55	RTL	Pacer Financial	Pair Corr
0.51	MORE	MORE	Pair Corr
0.36	BITX	Volatility Shares Trust Buyout Trend	Pair Corr
0.8	XONE	Bondbloxx Bloomberg One	Pair Corr
0.79	ICSH	iShares Ultra Short	Pair Corr
0.73	SEIX	Virtus ETF Trust	Pair Corr
0.73	WUCT	UBS AG London	Pair Corr
0.69	BRLN	Blackrock ETF Trust	Pair Corr
0.67	XDEC	First Trust Exchange	Pair Corr
0.64	PJAN	Innovator SP 500	Pair Corr
0.6	FLDR	Fidelity Low Duration	Pair Corr
0.58	YMAG	YieldMax Magnificent	Pair Corr
0.52	GMM	Global Mofy Metaverse	Pair Corr
0.5	SPYG	SPDR Portfolio SP	Pair Corr
0.48	FTLS	First Trust LongShort	Pair Corr
0.36	BCD	abrdn Bloomberg All	Pair Corr
0.75	JAAA	Janus Detroit Street	Pair Corr
0.73	YEAR	AB Ultra Short	Pair Corr
0.67	HAPR	Innovator Premium Income	Pair Corr
0.65	TSL	GraniteShares 125x Long	Pair Corr
0.65	GJAN	First Trust Exchange	Pair Corr
0.62	STK	Columbia Seligman Premium	Pair Corr

Related Correlations Analysis

	XLC	XLB	XLI	XLY	XLP
XLC		-0.54	0.12	0.95	-0.03	XLC
XLB	-0.54		0.7	-0.68	0.7	XLB
XLI	0.12	0.7		-0.05	0.66	XLI
XLY	0.95	-0.68	-0.05		-0.16	XLY
XLP	-0.03	0.7	0.66	-0.16		XLP
	XLC	XLB	XLI	XLY	XLP

Click cells to compare fundamentals

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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

XLY	+ 0.95	XLC
XLI	+ 0.7	XLB
XLP	+ 0.7	XLB
XLP	+ 0.66	XLI
XLI	+ 0.12	XLC

High negative correlations

XLY	- 0.68	XLB
XLB	- 0.54	XLC
XLP	- 0.16	XLY
XLY	- 0.05	XLI
XLP	- 0.03	XLC

Real Estate Constituents Risk-Adjusted Indicators

There is a big difference between Real Etf performing well and Real Estate 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 Real Estate'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
XLC	0.69	0.10	0.10	0.43	0.93	(0.69)	1.57	(1.49)	5.31
XLB	0.70	(0.13)	0.00	(0.44)	0.00	0.00	1.24	(1.32)	4.22
XLI	0.67	(0.01)	0.00	(0.04)	0.00	0.00	1.26	(1.22)	6.74
XLY	0.96	0.21	0.16	0.84	1.10	(1.05)	2.31	(1.61)	7.70
XLP	0.48	(0.09)	0.00	(0.52)	0.00	0.00	0.75	(1.17)	2.73

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