Consumer Discretionary Correlations

XLY Etf

USD 215.00 0.38 0.18%

The current 90-days correlation between Consumer Discretionary and Consumer Staples Select is 0.18 (i.e., Average diversification). The correlation of Consumer Discretionary 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.

Consumer Discretionary Correlation With Market

Poor diversification

The correlation between Consumer Discretionary Select and DJI is 0.69 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Consumer Discretionary 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 Consumer Discretionary 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 Consumer Etf

1.0	VCR	Vanguard Consumer	Pair Corr
1.0	FDIS	Fidelity MSCI Consumer	Pair Corr
1.0	IYC	iShares Consumer Dis	Pair Corr
0.95	PEJ	Invesco Dynamic Leisure	Pair Corr
0.91	FXD	First Trust Consumer	Pair Corr
0.87	RCD	Invesco SP 500	Pair Corr
0.7	XRT	SPDR SP Retail	Pair Corr
0.93	VTI	Vanguard Total Stock	Pair Corr
0.95	VBK	Vanguard Small Cap	Pair Corr
0.91	SPY	SPDR SP 500	Pair Corr
0.86	PPA	Invesco Aerospace Defense	Pair Corr
0.88	CSCO	Cisco Systems	Pair Corr
0.76	TRV	The Travelers Companies Fiscal Year End 17th of January 2025	Pair Corr
0.71	JPM	JPMorgan Chase Fiscal Year End 10th of January 2025	Pair Corr
0.85	BAC	Bank of America Fiscal Year End 10th of January 2025	Pair Corr
0.91	WMT	Walmart Aggressive Push	Pair Corr
0.72	HD	Home Depot	Pair Corr
0.79	T	ATT Inc Aggressive Push	Pair Corr

Moving against Consumer Etf

0.56	AIVI	WisdomTree International	Pair Corr
0.43	WTRE	WisdomTree New Economy	Pair Corr
0.39	VPL	Vanguard FTSE Pacific	Pair Corr
0.84	MRK	Merck Company Fiscal Year End 6th of February 2025	Pair Corr
0.83	BA	Boeing Fiscal Year End 29th of January 2025	Pair Corr
0.82	JNJ	Johnson Johnson Fiscal Year End 28th of January 2025	Pair Corr
0.78	KO	Coca Cola Aggressive Push	Pair Corr
0.71	PFE	Pfizer Inc Fiscal Year End 4th of February 2025	Pair Corr

Related Correlations Analysis

	XLP	XLI	XLB	XLV	XLK
XLP		-0.5	0.04	0.77	-0.6	XLP
XLI	-0.5		0.6	-0.63	0.88	XLI
XLB	0.04	0.6		0.03	0.54	XLB
XLV	0.77	-0.63	0.03		-0.57	XLV
XLK	-0.6	0.88	0.54	-0.57		XLK
	XLP	XLI	XLB	XLV	XLK

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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

XLK	+ 0.88	XLI
XLV	+ 0.77	XLP
XLB	+ 0.6	XLI
XLK	+ 0.54	XLB
XLB	+ 0.04	XLP
XLV	+ 0.03	XLB

High negative correlations

XLV	- 0.63	XLI
XLK	- 0.6	XLP
XLK	- 0.57	XLV
XLI	- 0.5	XLP

Consumer Discretionary Constituents Risk-Adjusted Indicators

There is a big difference between Consumer Etf performing well and Consumer Discretionary 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 Consumer Discretionary'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
XLB	0.69	(0.04)	(0.07)	0.04	0.80	(0.71)	1.37	(1.27)	3.77
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

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