Rational Defensive Correlations

HSUAX Fund

USD 36.07 0.39 1.09%

The current 90-days correlation between Rational Defensive Growth and Lord Abbett Convertible is 0.89 (i.e., Very poor diversification). The correlation of Rational Defensive 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.

Rational Defensive Correlation With Market

Almost no diversification

The correlation between Rational Defensive Growth and DJI is 0.92 (i.e., Almost no diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Rational Defensive Growth and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Rational Defensive Growth. 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 nation.

Moving together with Rational Mutual Fund

0.9	RNECX	Rationalrgn Hedged Equity	Pair Corr
0.9	RNEAX	Rationalrgn Hedged Equity	Pair Corr
0.95	RNEIX	Rationalrgn Hedged Equity	Pair Corr
0.9	RDMAX	Rational Dynamic Momentum	Pair Corr
0.9	RDMIX	Rational Dynamic Momentum	Pair Corr
0.91	RDMCX	Rational Dynamic Momentum	Pair Corr
0.92	RHSAX	Rational Strategic	Pair Corr
0.92	RHSIX	Rational Strategic	Pair Corr
1.0	HSUCX	Rational Defensive Growth	Pair Corr
0.89	HBAFX	Rational Strategic	Pair Corr
0.97	HDCAX	Rational Dividend Capture	Pair Corr
0.97	HDCEX	Rational Dividend Capture	Pair Corr
0.92	HDCTX	Rational Dividend Capture	Pair Corr
0.89	PBXIX	Rationalpier 88 Conv	Pair Corr
0.9	PBXCX	Rationalpier 88 Conv	Pair Corr
0.95	PBXAX	Rationalpier 88 Conv	Pair Corr
0.98	FAFGX	American Funds	Pair Corr
0.98	FFAFX	American Funds	Pair Corr
0.98	GFACX	Growth Fund	Pair Corr
0.94	GFAFX	Growth Fund	Pair Corr
0.98	AGTHX	Growth Fund	Pair Corr
0.98	CGFFX	Growth Fund	Pair Corr
0.98	CGFCX	Growth Fund	Pair Corr
0.94	CGFAX	Growth Fund	Pair Corr
0.98	CGFEX	Growth Fund	Pair Corr
0.98	RGAEX	Growth Fund	Pair Corr
0.75	WHIYX	Ivy High Income	Pair Corr
0.77	IVHIX	Ivy High Income	Pair Corr
0.79	IHIFX	Ivy High Income	Pair Corr
0.8	WRHIX	Ivy High Income	Pair Corr
0.75	WHIAX	Ivy High Income	Pair Corr

Moving against Rational Mutual Fund

0.76	HRSTX	Rational Real Strategies	Pair Corr
0.74	HRSAX	Rational Real Strategies	Pair Corr
0.73	HRSFX	Rational Real Strategies	Pair Corr
0.72	RFXIX	Rational Special Sit	Pair Corr
0.7	RFXCX	Rational Special Sit	Pair Corr
0.67	RFXAX	Rational Special Sit	Pair Corr
0.78	VFIRX	Vanguard Short Term	Pair Corr
0.58	STTIX	Stadion Trilogy Alte	Pair Corr

Related Correlations Analysis

	LCFYX	NCIDX	PBXIX	XAVKX	ARBOX
LCFYX		0.93	0.91	0.9	-0.46	LCFYX
NCIDX	0.93		0.97	0.96	-0.55	NCIDX
PBXIX	0.91	0.97		0.97	-0.47	PBXIX
XAVKX	0.9	0.96	0.97		-0.5	XAVKX
ARBOX	-0.46	-0.55	-0.47	-0.5		ARBOX
	LCFYX	NCIDX	PBXIX	XAVKX	ARBOX

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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

PBXIX	+ 0.97	NCIDX
XAVKX	+ 0.97	PBXIX
XAVKX	+ 0.96	NCIDX
NCIDX	+ 0.93	LCFYX
PBXIX	+ 0.91	LCFYX
XAVKX	+ 0.9	LCFYX

High negative correlations

ARBOX	- 0.55	NCIDX
ARBOX	- 0.5	XAVKX
ARBOX	- 0.47	PBXIX
ARBOX	- 0.46	LCFYX

Risk-Adjusted Indicators

There is a big difference between Rational Mutual Fund performing well and Rational Defensive 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 Rational Defensive'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	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
LCFYX	0.75	(0.04)	0.00	(0.16)	0.00	1.10	(1.56)	4.64
NCIDX	0.73	(0.14)	0.00	4.20	0.00	1.30	(1.69)	4.64
PBXIX	0.53	(0.09)	0.00	4.25	0.00	0.83	(1.28)	3.63
XAVKX	0.74	(0.19)	0.00	(7.12)	0.00	1.09	(1.51)	5.47
ARBOX	0.05	0.02	0.70	1.12	(0.10)	0.09	(0.09)	0.44

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