Materials Select Correlations

XLB Etf

USD 94.30 0.05 0.05%

The current 90-days correlation between Materials Select Sector and Industrial Select Sector is 0.71 (i.e., Poor diversification). The correlation of Materials 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.

Materials Select Correlation With Market

Poor diversification

The correlation between Materials Select Sector 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 Materials 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 Materials 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 Materials Etf

0.64	EV	Mast Global Battery	Pair Corr
0.92	VAW	Vanguard Materials Index	Pair Corr
0.69	PHO	Invesco Water Resources	Pair Corr
0.94	FXZ	First Trust Materials	Pair Corr
0.73	FIW	First Trust Water	Pair Corr
0.73	URNM	Sprott Uranium Miners	Pair Corr
0.98	IYM	iShares Basic Materials	Pair Corr
0.77	ITDD	iShares Trust	Pair Corr
0.79	MCD	McDonalds Fiscal Year End 3rd of February 2025	Pair Corr
0.66	HD	Home Depot Sell-off Trend	Pair Corr

Related Correlations Analysis

	XLI	XLY	XLP	XLU	XLV
XLI		0.9	-0.51	0.68	-0.67	XLI
XLY	0.9		-0.52	0.55	-0.82	XLY
XLP	-0.51	-0.52		-0.07	0.72	XLP
XLU	0.68	0.55	-0.07		-0.4	XLU
XLV	-0.67	-0.82	0.72	-0.4		XLV
	XLI	XLY	XLP	XLU	XLV

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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

XLY	+ 0.9	XLI
XLV	+ 0.72	XLP
XLU	+ 0.68	XLI
XLU	+ 0.55	XLY

High negative correlations

XLV	- 0.82	XLY
XLV	- 0.67	XLI
XLP	- 0.52	XLY
XLP	- 0.51	XLI
XLV	- 0.4	XLU
XLU	- 0.07	XLP

Materials Select Constituents Risk-Adjusted Indicators

There is a big difference between Materials Etf performing well and Materials 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 Materials 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
XLI	0.66	0.03	0.05	0.15	0.56	(0.75)	1.67	(1.16)	5.60
XLY	0.87	0.14	0.14	0.26	0.69	(1.01)	2.02	(1.53)	4.68
XLP	0.50	(0.01)	(0.18)	0.04	0.63	(0.50)	0.79	(0.99)	2.42
XLU	0.79	0.12	0.02	0.73	0.83	(0.87)	1.74	(1.48)	4.95
XLV	0.54	(0.16)	0.00	(0.18)	0.00	0.00	0.80	(1.37)	2.88

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