K2 Alternative Correlations

FASRX Fund  USD 11.37  0.07  0.61%   
The current 90-days correlation between K2 Alternative Strategies and Franklin Mutual Beacon is 0.53 (i.e., Very weak diversification). The correlation of K2 Alternative 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.

K2 Alternative Correlation With Market

Very weak diversification

The correlation between K2 Alternative Strategies and DJI is 0.57 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding K2 Alternative Strategies and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in K2 Alternative Strategies. 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 metropolitan statistical area.

Moving together with FASRX Mutual Fund

  0.93TEBIX Franklin Mutual BeaconPairCorr
  0.97TEDMX Templeton DevelopingPairCorr
  0.9TEDIX Franklin Mutual GlobalPairCorr
  0.89TEDSX Franklin Mutual GlobalPairCorr
  0.89TEDRX Franklin Mutual GlobalPairCorr
  0.93TEFRX Templeton ForeignPairCorr
  0.93TEFTX Templeton ForeignPairCorr
  0.82TEGBX Templeton Global BondPairCorr
  0.98TEGRX Templeton GrowthPairCorr
  0.93TEMFX Templeton ForeignPairCorr
  0.75TEMGX Templeton Global SmallerPairCorr
  0.93TEMEX Franklin Mutual BeaconPairCorr
  0.78TEMMX Templeton EmergingPairCorr
  0.93TEMIX Franklin Mutual EuropeanPairCorr
  0.98TEMWX Templeton WorldPairCorr
  0.79TEMTX Franklin Mutual SharesPairCorr
  0.8TEMQX Mutual QuestPairCorr
  0.94SAIFX Clearbridge Large CapPairCorr
  0.75SAGYX Clearbridge AggressivePairCorr
  0.78TEMZX Templeton EmergingPairCorr
  0.77FQEMX Franklin Templeton SmacsPairCorr
  0.8TEQIX Franklin Mutual QuestPairCorr
  0.98TEPLX Templeton GrowthPairCorr
  0.78TWDAX Templeton WorldPairCorr
  0.91TESIX Franklin Mutual SharesPairCorr
  0.76TESGX Templeton Global SmallerPairCorr
  0.91TESRX Franklin Mutual SharesPairCorr
  0.65LGGAX Clearbridge InternationalPairCorr
  0.76TEURX Franklin Mutual EuropeanPairCorr
  0.71LGIEX Qs International EquityPairCorr
  0.78TEWTX Templeton WorldPairCorr
  0.98SAPYX Clearbridge AppreciationPairCorr
  0.75SASMX Clearbridge Small CapPairCorr
  0.77WAADX Western Asset SmashPairCorr
  0.89WAARX Western Asset TotalPairCorr

Moving against FASRX Mutual Fund

  0.65FQCHX Franklin Templeton SmacsPairCorr
  0.59FQLAX Franklin Louisiana TaxPairCorr
  0.51FQMDX Franklin Maryland TaxPairCorr
  0.41FQNCX Franklin North CarolinaPairCorr
  0.32FQTHX Franklin Templeton SmacsPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between FASRX Mutual Fund performing well and K2 Alternative 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 K2 Alternative'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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
TEBIX  0.58  0.01 (0.01) 0.11  0.58 
 1.43 
 3.58 
TEDMX  0.59  0.13  0.13  0.31  0.39 
 1.81 
 4.48 
TEDIX  0.54 (0.03)(0.06) 0.07  0.67 
 1.15 
 3.17 
TEDSX  0.54 (0.03)(0.07) 0.07  0.69 
 1.15 
 3.25 
TEDRX  0.54 (0.03)(0.06) 0.07  0.69 
 1.14 
 3.24 
TEFRX  0.69  0.02  0.00  0.13  0.71 
 1.57 
 4.25 
TEFTX  0.69  0.02  0.00  0.13  0.70 
 1.63 
 4.24 
TEGBX  0.35  0.03 (0.16)(0.72) 0.36 
 0.71 
 2.12 
TEGRX  0.50  0.09  0.10  0.22  0.30 
 1.28 
 3.28 
TEMFX  0.69  0.03  0.01  0.14  0.68 
 1.63 
 4.14