Health Care Correlations

XLV Etf

USD 144.03 1.15 0.80%

The current 90-days correlation between Health Care Select and Consumer Staples Select is 0.44 (i.e., Very weak diversification). The correlation of Health Care 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. If the correlation is 0, the equities are not correlated; they are entirely random.

Health Care Correlation With Market

Very weak diversification

The correlation between Health Care Select and DJI is 0.58 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Health Care Select 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 Health Care Select. 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 Health Etf

0.99	VHT	Vanguard Health Care	Pair Corr
0.8	IBB	iShares Biotechnology ETF	Pair Corr
0.99	IXJ	iShares Global Healthcare	Pair Corr
1.0	IYH	iShares Healthcare ETF	Pair Corr
1.0	FHLC	Fidelity MSCI Health	Pair Corr
0.65	ARKG	ARK Genomic Revolution	Pair Corr
0.88	IHF	iShares Healthcare	Pair Corr
0.97	HART	IQ Healthy Hearts	Pair Corr
0.7	GREI	Goldman Sachs Future	Pair Corr
0.88	BITI	ProShares Trust	Pair Corr
0.83	JNJ	Johnson Johnson Fiscal Year End 28th of January 2025	Pair Corr
0.84	PFE	Pfizer Inc Fiscal Year End 4th of February 2025	Pair Corr
0.67	BA	Boeing Fiscal Year End 29th of January 2025	Pair Corr
0.94	MRK	Merck Company Fiscal Year End 6th of February 2025	Pair Corr
0.92	KO	Coca Cola Aggressive Push	Pair Corr

Moving against Health Etf

0.85	STCE	Schwab Strategic Trust	Pair Corr
0.8	EOS	Eaton Vance Enhanced	Pair Corr
0.73	VBK	Vanguard Small Cap	Pair Corr
0.52	EVUS	iShares ESG Aware	Pair Corr
0.46	IHI	iShares Medical Devices	Pair Corr
0.46	XOP	SPDR SP Oil	Pair Corr
0.42	MAPP	Harbor ETF Trust	Pair Corr
0.87	DIS	Walt Disney Aggressive Push	Pair Corr
0.79	CSCO	Cisco Systems	Pair Corr
0.76	JPM	JPMorgan Chase Fiscal Year End 10th of January 2025	Pair Corr
0.7	AXP	American Express Fiscal Year End 24th of January 2025	Pair Corr
0.69	SPY	SPDR SP 500	Pair Corr
0.69	TRV	The Travelers Companies Fiscal Year End 17th of January 2025	Pair Corr
0.65	INTC	Intel Fiscal Year End 23rd of January 2025	Pair Corr
0.59	PPA	Invesco Aerospace Defense	Pair Corr
0.59	HPQ	HP Inc	Pair Corr

Related Correlations Analysis

	XLP	XLI	XLY	XLU	XLK
XLP		-0.5	-0.55	-0.03	-0.6	XLP
XLI	-0.5		0.9	0.69	0.88	XLI
XLY	-0.55	0.9		0.54	0.78	XLY
XLU	-0.03	0.69	0.54		0.52	XLU
XLK	-0.6	0.88	0.78	0.52		XLK
	XLP	XLI	XLY	XLU	XLK

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	+ 0.9	XLI
XLK	+ 0.88	XLI
XLK	+ 0.78	XLY
XLU	+ 0.69	XLI
XLU	+ 0.54	XLY
XLK	+ 0.52	XLU

High negative correlations

XLK	- 0.6	XLP
XLY	- 0.55	XLP
XLI	- 0.5	XLP
XLU	- 0.03	XLP

Health Care Constituents Risk-Adjusted Indicators

There is a big difference between Health Etf performing well and Health Care 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 Health Care'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
XLP	0.48	(0.02)	0.00	(0.32)	0.00	0.00	0.71	(0.99)	2.42
XLI	0.65	0.04	0.06	0.12	0.59	(0.74)	1.67	(1.16)	5.60
XLY	0.92	0.13	0.14	0.21	0.80	(1.07)	2.02	(1.55)	4.68
XLU	0.76	0.10	0.03	0.68	0.84	(0.82)	1.50	(1.48)	4.95
XLK	1.03	(0.05)	(0.02)	0.04	1.54	(1.03)	1.87	(2.48)	6.62

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