10-Year View: Sectors Less Correlated Than Over Shorter Periods

Includes: IVV, SPY
by: TickerSense

In our recent post on sector correlations, one reader noticed that all the sectors were positively correlated, and wondered if this was unique. On that note, we stretched out the time horizon to a ten year period and found that the positive relationships are no longer as solid.

One extreme example concerns the relationship between consumer staples and telecom services. Over the last year, the two have almost had a perfect correlation (0.94), but over a ten-year window, their correlation is actually negative (-0.20).

10-yr sector correlations

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