Health Care Correlations
| XLV Etf | USD 141.30 1.82 1.30% |
The correlation of Health Care 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 perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Health Care moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Health Care Select 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.
Very poor diversification
The correlation between Health Care Select and NYA is 0.8 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Health Care Select and NYA in the same portfolio, assuming nothing else is changed.
Health |
The ability to find closely correlated positions to Health Care could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Health Care 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 Health Care - 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 Health Care Select to buy it.
Moving together with Health Etf
| 0.97 | VHT | Vanguard Health Care | PairCorr |
| 0.69 | IBB | iShares Biotechnology ETF | PairCorr |
| 0.8 | XBI | SPDR SP Biotech | PairCorr |
| 0.91 | IHI | iShares Medical Devices | PairCorr |
| 0.98 | IXJ | iShares Global Healthcare | PairCorr |
| 1.0 | IYH | iShares Healthcare ETF | PairCorr |
| 1.0 | FHLC | Fidelity MSCI Health | PairCorr |
| 0.86 | IHF | iShares Healthcare | PairCorr |
| 0.7 | UPRO | ProShares UltraPro SP500 | PairCorr |
| 0.67 | QTJA | Innovator ETFs Trust | PairCorr |
| 0.66 | QTAP | Innovator Growth 100 | PairCorr |
| 0.61 | XTJA | Innovator ETFs Trust | PairCorr |
| 0.62 | XDJA | Innovator ETFs Trust | PairCorr |
| 0.78 | XTAP | Innovator Equity Acc | PairCorr |
Related Correlations Analysis
| 0.81 | 0.93 | 0.79 | 0.82 | IAK | ||
| 0.81 | 0.71 | 0.68 | 0.75 | SCRYY | ||
| 0.93 | 0.71 | 0.77 | 0.78 | MSTSX | ||
| 0.79 | 0.68 | 0.77 | 0.67 | ID | ||
| 0.82 | 0.75 | 0.78 | 0.67 | VIASP | ||
| Click cells to compare fundamentals | Check Volatility | Backtest Portfolio |
Health Care Constituents Risk-Adjusted Indicators
There is a big difference between Health Etf performing well and Health Care 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 Health Care'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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| IAK | 0.56 | 0.08 | 0.04 | 0.27 | 0.62 | 1.22 | 3.84 | |||
| SCRYY | 1.67 | 0.14 | 0.03 | 14.88 | 1.90 | 4.10 | 12.54 | |||
| MSTSX | 0.46 | (0.01) | (0.03) | 0.07 | 0.60 | 1.03 | 3.20 | |||
| ID | 7.89 | 2.84 | 0.29 | (0.98) | 7.01 | 15.25 | 120.24 | |||
| VIASP | 1.40 | 0.18 | 0.09 | 0.24 | 1.87 | 3.60 | 13.41 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in Health Care without increasing your portfolio risk or giving up the 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.Did you try this?
Run My Watchlist Analysis Now
My Watchlist AnalysisAnalyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |
| All Next | Launch Module |
Already Invested in Health Care Select?
The danger of trading Health Care Select 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 Health Care 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 Health Care. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Health Care Select 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.
When determining whether Health Care Select is a strong investment it is important to analyze Health Care's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Health Care's future performance. For an informed investment choice regarding Health Etf, refer to the following important reports: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Health Care Select. Also, note that the market value of any etf could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
The market value of Health Care Select is measured differently than its book value, which is the value of Health that is recorded on the company's balance sheet. Investors also form their own opinion of Health Care's value that differs from its market value or its book value, called intrinsic value, which is Health Care'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 Health Care's market value can be influenced by many factors that don't directly affect Health Care'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 Health Care's value and its price as these two are different measures arrived at by different means. Investors typically determine if Health Care is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Health Care'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.