SP 500 Correlations

RYH
 Etf
  

USD 285.34  2.90  1.03%   

The correlation of SP 500 is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as SP 500 moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SP 500 EW moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Additionally, take a look at Your Equity Center.
  
The ability to find closely correlated positions to SP 500 could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SP 500 when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back SP 500 - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SP 500 EW to buy it.

Moving together with SP 500

0.94XLVSP 500 HealthcarePairCorr
0.9VHTHealthcare ETF VanguardPairCorr
0.97IHIUS Medical DevicesPairCorr
0.94IXJGlobal Healthcare IsharesPairCorr
0.92IYHUS Healthcare IsharesPairCorr
0.9FHLCFidelity Health CarePairCorr
0.85IHFUS Healthcare ProvidersPairCorr
0.9VTITotal Stock MarketPairCorr
0.9SPYSP 500 SPDRPairCorr
0.84BNDTotal Bond MarketPairCorr
0.9IVVSP 500 IsharesPairCorr
0.78VTVVanguard Value ETFPairCorr
0.65VEAFTSE Developed MarketsPairCorr
0.86VUGVanguard Growth ETFPairCorr
0.89VOMidcap ETF VanguardPairCorr
0.88VBSmallcap ETF VanguardPairCorr

Related Correlations

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Correlation Matchups

The Correlation Coefficient is a useful tool to identify correlated or non-correlated securities, which is essential in developing a diversified portfolio. It tells us the relationship between two positions you have in your portfolio or considering acquiring. Over a given time period, the two securities movetogether 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   
FUBER
FMSFT
AMSFT
AF
UBERMSFT
XOMJPM
  
High negative correlations   
TF
TUBER
MRKTWTR
TTWTR
MRKF
MRKUBER

SP 500 Competition Risk-Adjusted Indicators

Nowadays, there is a big difference between SP 500 stock performing well and SP 500 ETF doing well compared to the competition. There are way too many exceptions to the normal that investors can tell for sure what's good or bad unless they analyze SP 500's multiple risk-adjusted performance indicators. 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
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
TWTR 2.29 (0.19)  0.00 (0.22)  0.00 (0.06)  0.00  4.00 (5.55)  17.65 
MSFT 1.67  0.06  0.03  0.03  2.15  0.0259 (1.72)  2.97 (4.10)  7.83 
UBER 3.64  0.35  0.07  0.18  4.63  0.07 (3.67)  6.40 (7.19)  19.40 
F 2.64  0.14  0.04  0.05  3.18  0.0374 (2.85)  5.27 (5.54)  16.83 
T 1.14 (0.12)  0.00 (0.18)  0.00 (0.07)  0.00  2.00 (2.45)  10.60 
A 1.89  0.12  0.05  0.08  2.22  0.048 (2.06)  4.22 (3.24)  8.98 
CRM 2.48  0.15  0.05  0.07  2.88  0.043 (2.69)  5.77 (4.63)  16.84 
JPM 1.40 (0.07)  0.00 (0.08)  0.00 (0.0408)  0.00  3.03 (2.43)  10.79 
MRK 0.98  0.04  0.04  0.10  1.25  0.0376 (0.97)  1.83 (2.50)  6.96 
XOM 2.06  0.06  0.02  0.04  3.03  0.0217 (1.84)  3.33 (4.21)  10.43 

Be your own money manager

Our tools can tell you how much better you can do entering a position in SP 500 without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Invested in SP 500 EW?

You need to understand the risk of investing before taking a position in SP 500. The danger of trading SP 500 EW is mainly related to its market volatility and ETF specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of SP 500 is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than SP 500. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile SP 500 EW is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additionally, take a look at Your Equity Center. Note that the SP 500 EW information on this page should be used as a complementary analysis to other SP 500's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Complementary Tools for SP 500 Etf analysis

When running SP 500 EW price analysis, check to measure SP 500's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SP 500 is operating at the current time. Most of SP 500's value examination focuses on studying past and present price action to predict the probability of SP 500's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move SP 500's price. Additionally, you may evaluate how the addition of SP 500 to your portfolios can decrease your overall portfolio volatility.
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The market value of SP 500 EW is measured differently than its book value, which is the value of SP 500 that is recorded on the company's balance sheet. Investors also form their own opinion of SP 500's value that differs from its market value or its book value, called intrinsic value, which is SP 500's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SP 500's market value can be influenced by many factors that don't directly affect SP 500's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between SP 500's value and its price as these two are different measures arrived at by different means. Investors typically determine SP 500 value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SP 500's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.