Components' Implied Volatility / ETF Implied VolatilityComponent Ratio (the Ratio) = Weighted average of the ETF's component implied volatilities divided by the ETF's implied volatility. When the market is high (RED graph), the Ratio (BLUE graph) is mostly high. When the market is low, the Ratio is low.The component ratio shows the benefit of diversification (when HIGH), and the risk of implied correlation (when LOW).