| MDYV Etf | | | USD 81.39 0.15 0.18% |
The current 90-days correlation between SPDR SP 400 and SPDR SP 400 is 0.93 (i.e., Almost no diversification). The correlation of SPDR SP 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.
SPDR SP Correlation With Market
Very poor diversification
The correlation between SPDR SP 400 and DJI is 0.83 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 400 and DJI in the same portfolio, assuming nothing else is changed.
Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in SPDR SP 400. 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.