What is the "Alike Score?

The Alike Score is a measure of how closely correlated an ETFs trend direction movement is with the broad stock market index.  The range of values can go from +1 which is perfect correlation down to a reading of -1 which means perfect inverse correlation.

The alike score is helpful when assembling a portfolio of ETFs.  Selecting ETFs that have a range of Alike Scores will increase the diversification of your portfolio as not all ETFs will move inline with the market direction at the same velocity.  Having negative Alike Scores means that ETF generally moves in the opposite direction of the market index.

A great strategy is to build a portfolio of Green Zone leaders that have a wide range of Alike Scores.

 

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