Financial Select Correlations

XLF Etf

USD 52.68 0.29 0.55%

The current 90-days correlation between Financial Select Sector and Energy Select Sector is 0.33 (i.e., Weak 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

Almost no diversification

The correlation between Financial Select Sector and DJI is 0.92 (i.e., Almost no 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.

Build AI portfolio with Financial Etf

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

1.0	VFH	Vanguard Financials Index	Pair Corr
0.94	KRE	SPDR SP Regional Aggressive Push	Pair Corr
0.96	KBE	SPDR SP Bank	Pair Corr
0.99	IYF	iShares Financials ETF	Pair Corr
1.0	FNCL	Fidelity MSCI Financials	Pair Corr
0.99	IYG	iShares Financial	Pair Corr
0.95	EUFN	iShares MSCI Europe	Pair Corr
0.96	FXO	First Trust Financials	Pair Corr
0.94	IAT	iShares Regional Banks	Pair Corr
0.97	VTI	Vanguard Total Stock	Pair Corr
0.97	SPY	SPDR SP 500	Pair Corr
0.97	IVV	iShares Core SP	Pair Corr
0.96	VTV	Vanguard Value Index	Pair Corr
0.96	VUG	Vanguard Growth Index	Pair Corr
0.98	VO	Vanguard Mid Cap	Pair Corr
0.93	VEA	Vanguard FTSE Developed	Pair Corr
0.98	VB	Vanguard Small Cap	Pair Corr
0.83	KWEB	KraneShares CSI China	Pair Corr
0.73	SITC	Site Centers Corp Earnings Call This Week	Pair Corr
0.65	EUSB	iShares Trust	Pair Corr
0.94	DFEV	Dimensional ETF Trust	Pair Corr
0.73	PALL	abrdn Physical Palladium	Pair Corr
0.83	KGRN	KraneShares MSCI China	Pair Corr
0.95	SRLN	SPDR Blackstone Senior	Pair Corr
0.98	DFAS	Dimensional Small Cap	Pair Corr
0.94	VYMI	Vanguard International	Pair Corr
0.91	MYMF	SPDR SSGA My2026	Pair Corr
0.94	PFUT	Putnam Sustainable Future	Pair Corr
0.96	SAUG	First Trust Exchange	Pair Corr
0.83	VABS	Virtus Newfleet ABSMBS	Pair Corr
0.96	CGGO	Capital Group Global	Pair Corr
0.82	VBF	Invesco Van Kampen	Pair Corr
0.96	QTOC	Innovator ETFs Trust	Pair Corr
0.91	FXED	Tidal ETF Trust	Pair Corr
0.96	SUPP	TCW Transform Supply	Pair Corr
0.91	NFLX	Netflix	Pair Corr
0.95	VWO	Vanguard FTSE Emerging	Pair Corr

Related Correlations Analysis

	XLE	XLK	XLV	XLI	XLP
XLE		0.83	-0.04	0.77	-0.06	XLE
XLK	0.83		-0.23	0.98	0.15	XLK
XLV	-0.04	-0.23		-0.29	0.06	XLV
XLI	0.77	0.98	-0.29		0.24	XLI
XLP	-0.06	0.15	0.06	0.24		XLP
	XLE	XLK	XLV	XLI	XLP

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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

XLI	+ 0.98	XLK
XLK	+ 0.83	XLE
XLI	+ 0.77	XLE
XLP	+ 0.24	XLI
XLP	+ 0.15	XLK
XLP	+ 0.06	XLV

High negative correlations

XLI	- 0.29	XLV
XLV	- 0.23	XLK
XLP	- 0.06	XLE
XLV	- 0.04	XLE

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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
XLE	1.05	0.07	(0.01)	0.31	1.13	(1.11)	2.25	(1.95)	5.23
XLK	0.94	0.25	0.24	0.37	0.70	(1.13)	2.44	(1.40)	6.52
XLV	0.89	(0.19)	0.00	(0.08)	0.00	0.00	1.42	(2.35)	5.48
XLI	0.68	0.15	0.17	0.31	0.41	(0.80)	1.77	(0.88)	4.76
XLP	0.60	(0.05)	(0.19)	0.00	0.68	(0.67)	1.25	(1.17)	3.48

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