| DJP Etf | | | USD 35.26 0.24 0.69% |
The current 90-days correlation between iPath Bloomberg Commodity and Invesco DB Base is 0.34 (i.e., Weak diversification). The correlation of IPath Bloomberg 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.
IPath Bloomberg Correlation With Market
Very good diversification
The correlation between iPath Bloomberg Commodity and DJI is -0.29 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iPath Bloomberg Commodity and DJI in the same portfolio, assuming nothing else is changed.
Check out
Investing Opportunities to better understand how to build diversified portfolios, which includes a position in iPath Bloomberg Commodity. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in inflation.