Applied Finance Correlations

AFDVX Fund

USD 23.41 0.02 0.09%

The current 90-days correlation between Applied Finance Explorer and Applied Finance Core is 0.85 (i.e., Very poor diversification). The correlation of Applied Finance is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Applied Finance Correlation With Market

Very poor diversification

The correlation between Applied Finance Explorer and DJI is 0.86 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Applied Finance Explorer and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Applied Finance Explorer. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in real.

Moving together with Applied Mutual Fund

0.9	AFALX	Applied Finance Core	Pair Corr
0.9	AFAZX	Applied Finance Core	Pair Corr
1.0	AFDZX	Applied Finance Explorer	Pair Corr
0.88	AFVZX	Applied Finance Select	Pair Corr
0.88	AFVLX	Applied Finance Select	Pair Corr
0.91	VSIIX	Vanguard Small Cap	Pair Corr
0.98	VISVX	Vanguard Small Cap	Pair Corr
0.87	DFSVX	Us Small Cap	Pair Corr
0.97	DFFVX	Us Targeted Value	Pair Corr
0.81	UBVCX	Undiscovered Managers	Pair Corr
0.81	UBVAX	Undiscovered Managers	Pair Corr
0.94	UBVSX	Undiscovered Managers	Pair Corr
0.98	AVFIX	American Beacon Small	Pair Corr
0.92	VSTSX	Vanguard Total Stock	Pair Corr
0.92	VSMPX	Vanguard Total Stock	Pair Corr
0.87	VITSX	Vanguard Total Stock	Pair Corr
0.91	VFFSX	Vanguard 500 Index	Pair Corr
0.86	VFIAX	Vanguard 500 Index	Pair Corr
0.91	VINIX	Vanguard Institutional	Pair Corr
0.92	VTSAX	Vanguard Total Stock	Pair Corr
0.91	FDSCX	Fidelity Stock Selector	Pair Corr
0.9	RICHX	Investment Of America	Pair Corr
0.85	SMAPX	Salient Mlp Energy	Pair Corr
0.77	ALPAX	Large Pany Value	Pair Corr
0.73	UTG	Reaves Utility If	Pair Corr
0.97	TVCFX	Thornburg Value	Pair Corr
0.91	VSMAX	Vanguard Small Cap	Pair Corr
0.63	PYCHX	Payden Regal	Pair Corr
0.69	UIHIX	High Income Fund	Pair Corr
0.68	AAIIX	Ancora Income	Pair Corr
0.93	VIMAX	Vanguard Mid Cap	Pair Corr
0.9	GSFTX	Columbia Dividend Income	Pair Corr
0.96	ASVNX	Small Cap Value	Pair Corr

Related Correlations Analysis

	AFALX	AFVZX	VGSLX	VTIBX	VRTPX	NFJ	UGSDX	PEO
AFALX		0.92	0.4	0.34	0.39	0.87	0.53	0.79	AFALX
AFVZX	0.92		0.36	0.36	0.35	0.89	0.39	0.82	AFVZX
VGSLX	0.4	0.36		0.82	1.0	0.62	0.53	-0.01	VGSLX
VTIBX	0.34	0.36	0.82		0.81	0.6	0.37	0.1	VTIBX
VRTPX	0.39	0.35	1.0	0.81		0.62	0.53	-0.01	VRTPX
NFJ	0.87	0.89	0.62	0.6	0.62		0.51	0.59	NFJ
UGSDX	0.53	0.39	0.53	0.37	0.53	0.51		0.25	UGSDX
PEO	0.79	0.82	-0.01	0.1	-0.01	0.59	0.25		PEO
	AFALX	AFVZX	VGSLX	VTIBX	VRTPX	NFJ	UGSDX	PEO

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

VRTPX	+ 1.0	VGSLX
AFVZX	+ 0.92	AFALX
NFJ	+ 0.89	AFVZX
NFJ	+ 0.87	AFALX
PEO	+ 0.82	AFVZX
VTIBX	+ 0.82	VGSLX

High negative correlations

PEO	- 0.01	VRTPX
PEO	- 0.01	VGSLX

Risk-Adjusted Indicators

There is a big difference between Applied Mutual Fund performing well and Applied Finance Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Applied Finance's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
AFALX	0.50	0.02	0.01	0.12	0.35	(0.64)	1.14	(0.86)	3.53
AFVZX	0.58	(0.02)	(0.05)	0.06	0.62	(0.67)	1.06	(1.16)	3.54
VGSLX	0.67	0.03	(0.05)	0.36	0.79	(0.68)	1.36	(1.35)	4.18
VTIBX	0.15	0.00	(0.37)	0.11	0.14	(0.20)	0.30	(0.30)	0.90
VRTPX	0.67	0.03	(0.05)	0.36	0.79	(0.68)	1.37	(1.35)	4.17
NFJ	0.47	0.01	(0.05)	0.12	0.54	(0.48)	1.04	(0.85)	2.62
UGSDX	0.05	0.00	0.00	0.74	0.00	0.00	0.00	0.00	1.03
PEO	0.72	0.02	(0.02)	0.12	1.04	(0.73)	1.62	(1.61)	5.19

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