Correlations	3 year weekly ending 4/26/2008
	DIA	SPY	QQQQ	IWV	IWM	IWN	EFA	EZU	EWJ	EPP	EEM	EWU	EWA	EWZ	EWT	EWH	EWY	IFN	SMH	IAH	SWH	BDH	WMH	TTH	HHH	IIH	PPH	XLF	XLB	XLE	RTH	RKH	BBH	RWR	TLT	IEF	^XAU
DIA	1.00	0.97	0.83	0.95	0.84	0.82	0.81	0.80	0.65	0.73	0.79	0.78	0.67	0.68	0.57	0.70	0.67	0.60	0.65	0.71	0.74	0.63	0.77	0.70	0.62	0.58	0.65	0.82	0.76	0.51	0.78	0.72	0.48	0.71	-0.22	-0.30	0.26
SPY	0.97	1.00	0.85	0.99	0.90	0.88	0.84	0.82	0.67	0.77	0.83	0.81	0.72	0.72	0.58	0.73	0.70	0.62	0.68	0.69	0.74	0.67	0.80	0.70	0.66	0.59	0.67	0.85	0.78	0.61	0.77	0.74	0.52	0.75	-0.22	-0.30	0.32
QQQQ	0.83	0.85	1.00	0.86	0.80	0.75	0.74	0.74	0.59	0.68	0.76	0.71	0.64	0.63	0.62	0.68	0.68	0.60	0.80	0.85	0.85	0.79	0.82	0.57	0.75	0.64	0.48	0.62	0.68	0.46	0.72	0.49	0.52	0.57	-0.19	-0.27	0.25
IWV	0.95	0.99	0.86	1.00	0.92	0.90	0.83	0.81	0.66	0.76	0.83	0.80	0.72	0.72	0.60	0.71	0.70	0.60	0.70	0.69	0.75	0.69	0.80	0.68	0.66	0.61	0.64	0.85	0.79	0.61	0.80	0.74	0.50	0.76	-0.23	-0.31	0.33
IWM	0.84	0.90	0.80	0.92	1.00	0.98	0.76	0.74	0.62	0.68	0.80	0.74	0.64	0.68	0.58	0.66	0.67	0.57	0.70	0.63	0.68	0.67	0.73	0.58	0.62	0.63	0.52	0.75	0.76	0.59	0.74	0.64	0.49	0.77	-0.24	-0.29	0.34
IWN	0.82	0.88	0.75	0.90	0.98	1.00	0.72	0.69	0.59	0.64	0.75	0.69	0.61	0.64	0.56	0.62	0.64	0.51	0.67	0.59	0.64	0.63	0.68	0.56	0.59	0.60	0.51	0.79	0.72	0.57	0.76	0.70	0.46	0.79	-0.23	-0.28	0.30
EFA	0.81	0.84	0.74	0.83	0.76	0.72	1.00	0.95	0.83	0.86	0.89	0.93	0.81	0.78	0.68	0.73	0.75	0.65	0.57	0.58	0.66	0.60	0.78	0.59	0.51	0.52	0.58	0.59	0.81	0.66	0.57	0.47	0.46	0.58	-0.20	-0.26	0.53
EZU	0.80	0.82	0.74	0.81	0.74	0.69	0.95	1.00	0.69	0.78	0.86	0.90	0.74	0.75	0.64	0.67	0.69	0.61	0.57	0.57	0.67	0.59	0.76	0.59	0.51	0.51	0.60	0.54	0.79	0.65	0.53	0.42	0.47	0.53	-0.20	-0.25	0.52
EWJ	0.65	0.67	0.59	0.66	0.62	0.59	0.83	0.69	1.00	0.67	0.74	0.70	0.63	0.58	0.66	0.60	0.71	0.57	0.46	0.44	0.54	0.52	0.60	0.45	0.43	0.42	0.47	0.52	0.59	0.49	0.51	0.43	0.38	0.47	-0.16	-0.18	0.36
EPP	0.73	0.77	0.68	0.76	0.68	0.64	0.86	0.78	0.67	1.00	0.84	0.80	0.96	0.78	0.58	0.85	0.75	0.61	0.48	0.51	0.57	0.55	0.69	0.49	0.51	0.44	0.48	0.56	0.79	0.61	0.51	0.44	0.39	0.55	-0.25	-0.33	0.55
EEM	0.79	0.83	0.76	0.83	0.80	0.75	0.89	0.86	0.74	0.84	1.00	0.84	0.78	0.88	0.74	0.79	0.85	0.72	0.61	0.59	0.63	0.67	0.77	0.54	0.54	0.54	0.58	0.58	0.83	0.69	0.58	0.46	0.47	0.57	-0.28	-0.33	0.55
EWU	0.78	0.81	0.71	0.80	0.74	0.69	0.93	0.90	0.70	0.80	0.84	1.00	0.75	0.78	0.61	0.69	0.69	0.59	0.55	0.57	0.62	0.56	0.74	0.56	0.46	0.52	0.53	0.57	0.79	0.68	0.52	0.44	0.42	0.55	-0.24	-0.28	0.53
EWA	0.67	0.72	0.64	0.72	0.64	0.61	0.81	0.74	0.63	0.96	0.78	0.75	1.00	0.75	0.55	0.74	0.71	0.55	0.46	0.48	0.55	0.52	0.64	0.46	0.49	0.43	0.42	0.52	0.78	0.60	0.48	0.40	0.34	0.53	-0.23	-0.31	0.58
EWZ	0.68	0.72	0.63	0.72	0.68	0.64	0.78	0.75	0.58	0.78	0.88	0.78	0.75	1.00	0.56	0.65	0.70	0.55	0.53	0.47	0.50	0.56	0.65	0.43	0.45	0.49	0.45	0.47	0.79	0.69	0.47	0.36	0.39	0.47	-0.29	-0.32	0.62
EWT	0.57	0.58	0.62	0.60	0.58	0.56	0.68	0.64	0.66	0.58	0.74	0.61	0.55	0.56	1.00	0.57	0.74	0.52	0.54	0.52	0.55	0.54	0.56	0.35	0.47	0.45	0.42	0.46	0.53	0.36	0.53	0.38	0.34	0.42	-0.19	-0.20	0.32
EWH	0.70	0.73	0.68	0.71	0.66	0.62	0.73	0.67	0.60	0.85	0.79	0.69	0.74	0.65	0.57	1.00	0.74	0.65	0.43	0.51	0.54	0.52	0.65	0.48	0.52	0.43	0.52	0.56	0.64	0.49	0.53	0.45	0.40	0.49	-0.18	-0.24	0.34
EWY	0.67	0.70	0.68	0.70	0.67	0.64	0.75	0.69	0.71	0.75	0.85	0.69	0.71	0.70	0.74	0.74	1.00	0.63	0.53	0.48	0.56	0.61	0.67	0.46	0.52	0.47	0.50	0.53	0.67	0.48	0.55	0.43	0.37	0.50	-0.26	-0.30	0.41
IFN	0.60	0.62	0.60	0.60	0.57	0.51	0.65	0.61	0.57	0.61	0.72	0.59	0.55	0.55	0.52	0.65	0.63	1.00	0.43	0.48	0.57	0.53	0.55	0.38	0.41	0.34	0.43	0.44	0.57	0.50	0.42	0.32	0.34	0.40	-0.21	-0.24	0.36
SMH	0.65	0.68	0.80	0.70	0.70	0.67	0.57	0.57	0.46	0.48	0.61	0.55	0.46	0.53	0.54	0.43	0.53	0.43	1.00	0.69	0.65	0.73	0.65	0.46	0.59	0.55	0.34	0.51	0.54	0.36	0.60	0.43	0.38	0.48	-0.16	-0.20	0.20
IAH	0.71	0.69	0.85	0.69	0.63	0.59	0.58	0.57	0.44	0.51	0.59	0.57	0.48	0.47	0.52	0.51	0.48	0.48	0.69	1.00	0.75	0.61	0.65	0.48	0.58	0.59	0.35	0.48	0.49	0.33	0.61	0.34	0.41	0.44	-0.16	-0.23	0.14
SWH	0.74	0.74	0.85	0.75	0.68	0.64	0.66	0.67	0.54	0.57	0.63	0.62	0.55	0.50	0.55	0.54	0.56	0.57	0.65	0.75	1.00	0.59	0.63	0.52	0.61	0.58	0.39	0.56	0.56	0.36	0.62	0.45	0.38	0.50	-0.21	-0.27	0.20
BDH	0.63	0.67	0.79	0.69	0.67	0.63	0.60	0.59	0.52	0.55	0.67	0.56	0.52	0.56	0.54	0.52	0.61	0.53	0.73	0.61	0.59	1.00	0.81	0.45	0.59	0.51	0.40	0.51	0.56	0.37	0.60	0.39	0.42	0.46	-0.13	-0.19	0.23
WMH	0.77	0.80	0.82	0.80	0.73	0.68	0.78	0.76	0.60	0.69	0.77	0.74	0.64	0.65	0.56	0.65	0.67	0.55	0.65	0.65	0.63	0.81	1.00	0.65	0.58	0.53	0.53	0.59	0.67	0.47	0.62	0.49	0.45	0.54	-0.13	-0.22	0.28
TTH	0.70	0.70	0.57	0.68	0.58	0.56	0.59	0.59	0.45	0.49	0.54	0.56	0.46	0.43	0.35	0.48	0.46	0.38	0.46	0.48	0.52	0.45	0.65	1.00	0.40	0.39	0.55	0.57	0.46	0.35	0.53	0.50	0.31	0.50	-0.18	-0.27	0.07
HHH	0.62	0.66	0.75	0.66	0.62	0.59	0.51	0.51	0.43	0.51	0.54	0.46	0.49	0.45	0.47	0.52	0.52	0.41	0.59	0.58	0.61	0.59	0.58	0.40	1.00	0.52	0.32	0.54	0.54	0.33	0.55	0.44	0.44	0.43	-0.17	-0.20	0.20
IIH	0.58	0.59	0.64	0.61	0.63	0.60	0.52	0.51	0.42	0.44	0.54	0.52	0.43	0.49	0.45	0.43	0.47	0.34	0.55	0.59	0.58	0.51	0.53	0.39	0.52	1.00	0.27	0.44	0.55	0.31	0.59	0.35	0.36	0.44	-0.15	-0.17	0.22
PPH	0.65	0.67	0.48	0.64	0.52	0.51	0.58	0.60	0.47	0.48	0.58	0.53	0.42	0.45	0.42	0.52	0.50	0.43	0.34	0.35	0.39	0.40	0.53	0.55	0.32	0.27	1.00	0.54	0.39	0.32	0.47	0.50	0.49	0.45	-0.07	-0.12	0.09
XLF	0.82	0.85	0.62	0.85	0.75	0.79	0.59	0.54	0.52	0.56	0.58	0.57	0.52	0.47	0.46	0.56	0.53	0.44	0.51	0.48	0.56	0.51	0.59	0.57	0.54	0.44	0.54	1.00	0.53	0.32	0.74	0.95	0.34	0.76	-0.15	-0.23	0.08
XLB	0.76	0.78	0.68	0.79	0.76	0.72	0.81	0.79	0.59	0.79	0.83	0.79	0.78	0.79	0.53	0.64	0.67	0.57	0.54	0.49	0.56	0.56	0.67	0.46	0.54	0.55	0.39	0.53	1.00	0.70	0.52	0.41	0.40	0.59	-0.31	-0.35	0.63
XLE	0.51	0.61	0.46	0.61	0.59	0.57	0.66	0.65	0.49	0.61	0.69	0.68	0.60	0.69	0.36	0.49	0.48	0.50	0.36	0.33	0.36	0.37	0.47	0.35	0.33	0.31	0.32	0.32	0.70	1.00	0.28	0.22	0.30	0.36	-0.26	-0.26	0.66
RTH	0.78	0.77	0.72	0.80	0.74	0.76	0.57	0.53	0.51	0.51	0.58	0.52	0.48	0.47	0.53	0.53	0.55	0.42	0.60	0.61	0.62	0.60	0.62	0.53	0.55	0.59	0.47	0.74	0.52	0.28	1.00	0.68	0.42	0.68	-0.18	-0.27	0.01
RKH	0.72	0.74	0.49	0.74	0.64	0.70	0.47	0.42	0.43	0.44	0.46	0.44	0.40	0.36	0.38	0.45	0.43	0.32	0.43	0.34	0.45	0.39	0.49	0.50	0.44	0.35	0.50	0.95	0.41	0.22	0.68	1.00	0.28	0.70	-0.08	-0.13	0.01
BBH	0.48	0.52	0.52	0.50	0.49	0.46	0.46	0.47	0.38	0.39	0.47	0.42	0.34	0.39	0.34	0.40	0.37	0.34	0.38	0.41	0.38	0.42	0.45	0.31	0.44	0.36	0.49	0.34	0.40	0.30	0.42	0.28	1.00	0.38	0.02	0.03	0.22
RWR	0.71	0.75	0.57	0.76	0.77	0.79	0.58	0.53	0.47	0.55	0.57	0.55	0.53	0.47	0.42	0.49	0.50	0.40	0.48	0.44	0.50	0.46	0.54	0.50	0.43	0.44	0.45	0.76	0.59	0.36	0.68	0.70	0.38	1.00	-0.08	-0.16	0.21
TLT	-0.22	-0.22	-0.19	-0.23	-0.24	-0.23	-0.20	-0.20	-0.16	-0.25	-0.28	-0.24	-0.23	-0.29	-0.19	-0.18	-0.26	-0.21	-0.16	-0.16	-0.21	-0.13	-0.13	-0.18	-0.17	-0.15	-0.07	-0.15	-0.31	-0.26	-0.18	-0.08	0.02	-0.08	1.00	0.93	-0.13
IEF	-0.30	-0.30	-0.27	-0.31	-0.29	-0.28	-0.26	-0.25	-0.18	-0.33	-0.33	-0.28	-0.31	-0.32	-0.20	-0.24	-0.30	-0.24	-0.20	-0.23	-0.27	-0.19	-0.22	-0.27	-0.20	-0.17	-0.12	-0.23	-0.35	-0.26	-0.27	-0.13	0.03	-0.16	0.93	1.00	-0.09
^XAU	0.26	0.32	0.25	0.33	0.34	0.30	0.53	0.52	0.36	0.55	0.55	0.53	0.58	0.62	0.32	0.34	0.41	0.36	0.20	0.14	0.20	0.23	0.28	0.07	0.20	0.22	0.09	0.08	0.63	0.66	0.01	0.01	0.22	0.21	-0.13	-0.09	1.00
				Cells Coloring
			< 0.25		> 0.75
	*A high pairwise correlation hedged trade is a high Sharpe ratio  proposition, while a low pairwise correlation scenario is a high Alpha trade.  * Correlations are subject to the well-known phenomenon of inter-     temporal non-stationarity and sign inversion.  As such they are     best utilized as an indicative and explanatory factor, rather than a      predictive factor.
	The Pearson product moment correlation coefficient is calculated as follows:
	r12 = S(Yi1 - Y-bar1)*(Yi2 - Y-bar2) / [S(Yi1 - Y-bar1) 2 *S(Yi2 - Y-bar2) 2 ] (1/2)
	r12 = s (1, 2) /s1s2
	Copying/Redistribution without permission is a violation of copyright laws  2005  ©  http://AdvancedPortfolioSolutions.Com
	This work is purely for the purposes of research and understanding financial market dynamics.  Contact Pankaj Agrrawal, Ph.D. for clarification on any technical aspects of this research.