Financial Select Correlations

XLF Etf  USD 53.07  0.03  0.06%   
The current 90-days correlation between Financial Select Sector and Energy Select Sector is 0.22 (i.e., Modest diversification). The correlation of Financial 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.

Financial Select Correlation With Market

Good diversification

The correlation between Financial Select Sector and DJI is -0.14 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Financial 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 Financial 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 Financial Etf

  1.0VFH Vanguard Financials IndexPairCorr
  0.93KRE SPDR SP RegionalPairCorr
  0.8KBE SPDR SP BankPairCorr
  0.99IYF iShares Financials ETFPairCorr
  1.0FNCL Fidelity MSCI FinancialsPairCorr
  0.99IYG iShares FinancialPairCorr
  0.91EUFN iShares MSCI EuropePairCorr
  0.81FXO First Trust FinancialsPairCorr
  0.81IAT iShares Regional BanksPairCorr
  0.88DFEN Direxion Daily AerospacePairCorr
  0.86TARK AXS 2X InnovationPairCorr
  0.78BITU ProShares TrustPairCorr
  0.78BTCL T Rex 2XPairCorr
  0.63BTFX Valkyrie Bitcoin FuturesPairCorr
  0.69KWEB KraneShares CSI China Aggressive PushPairCorr
  0.75KEMQ KraneShares EmergingPairCorr
  0.68DFCF Dimensional ETF TrustPairCorr

Moving against Financial Etf

  0.73WTID UBS ETRACSPairCorr
  0.49MCD McDonaldsPairCorr

Related Correlations Analysis

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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   
XLIXLK
XLKXLE
XLIXLE
XLPXLI
XLPXLK
XLPXLV
  
High negative correlations   
XLIXLV
XLPXLE
XLVXLK

Financial Select Constituents Risk-Adjusted Indicators

There is a big difference between Financial Etf performing well and Financial 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 Financial 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.