How closely different market sectors have moved together, measured across the years you select. A correlation near +1.0 means two sectors tended to rise and fall together; nearer 0 means there was little linear relationship between their returns. Each figure uses only the years both sectors have data for. Lower correlation between holdings can indicate greater diversification.
Higher correlation means investments have historically moved more similarly. Lower correlation can indicate greater diversification between two investments.
Each figure is calculated only from the years both sectors have data for, over the range selected above.
Technology (XLK) and Utilities (XLU) have historically shown one of the lower correlations in this table; two sectors that both track technology show one of the higher ones.
Worth noting: The number of holdings and the correlation between them are separate things — a portfolio can hold many sectors that have historically moved together.