Originally Posted by
Pascal
XOP/XLE are correlated by 0.94
XLE and IWM are correlated by 0.66 XLE/GDX: 0.55
XOP/IWM: 0.66 XOP/GDX: 0.50
Since I have all the underlying for XLE, while I still would have to include many small stocks for XOP, since ERX/ERY are 100% correlated to XLE, while DIG/DUG are only 0.94 correlated to XOP,
and finally, since the volume is 4 times higher on XLE...
I believe that I will try to work out the XLE robot.
Pascal