IShares Real Correlations

IYR Etf

USD 102.87 0.79 0.77%

The current 90-days correlation between iShares Real Estate and SPDR Dow Jones is 0.96 (i.e., Almost no diversification). The correlation of IShares Real 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.

IShares Real Correlation With Market

Significant diversification

The correlation between iShares Real Estate and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Real Estate and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in iShares Real Estate. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in manufacturing.

Moving together with IShares Etf

0.99	VNQ	Vanguard Real Estate	Pair Corr
0.99	XLRE	Real Estate	Pair Corr
0.99	ICF	iShares Cohen Steers Low Volatility	Pair Corr
0.92	USRT	iShares Core REIT	Pair Corr
0.85	IRET	Tidal Trust II	Pair Corr
0.73	VZ	Verizon Communications Aggressive Push	Pair Corr
0.61	MSFT	Microsoft Aggressive Push	Pair Corr
0.65	PG	Procter Gamble	Pair Corr

Moving against IShares Etf

0.39	RTL	Pacer Financial	Pair Corr
0.39	MORE	MORE	Pair Corr
0.39	JPM	JPMorgan Chase Sell-off Trend	Pair Corr
0.35	CVX	Chevron Corp Sell-off Trend	Pair Corr

Related Correlations Analysis

	ICF	IYM	RWR	IYZ	IYF
ICF		0.15	0.92	-0.15	-0.25	ICF
IYM	0.15		0.19	0.46	0.2	IYM
RWR	0.92	0.19		0.15	0.08	RWR
IYZ	-0.15	0.46	0.15		0.89	IYZ
IYF	-0.25	0.2	0.08	0.89		IYF
	ICF	IYM	RWR	IYZ	IYF

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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

RWR	+ 0.92	ICF
IYF	+ 0.89	IYZ
IYZ	+ 0.46	IYM
IYF	+ 0.2	IYM
RWR	+ 0.19	IYM
IYM	+ 0.15	ICF

High negative correlations

IYF	- 0.25	ICF
IYZ	- 0.15	ICF

IShares Real Constituents Risk-Adjusted Indicators

There is a big difference between IShares Etf performing well and IShares Real 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 IShares Real'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
ICF	0.71	0.05	(0.07)	1.31	0.86	(0.71)	1.21	(1.23)	4.24
IYM	0.75	(0.09)	(0.11)	0.02	0.90	(0.80)	1.59	(1.52)	3.98
RWR	0.69	0.03	(0.07)	0.25	0.78	(0.74)	1.36	(1.21)	3.51
IYZ	0.64	0.14	0.19	0.31	0.17	(0.76)	1.44	(0.91)	3.70
IYF	0.78	0.06	0.12	0.16	0.59	(0.94)	1.82	(1.35)	8.59

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