| ICSIX Fund | | | USD 15.50 0.07 0.45% |
The current 90-days correlation between Dynamic Opportunity and Small Pany Value is 0.88 (i.e., Very poor diversification). The correlation of Dynamic Us 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.
Dynamic Us Correlation With Market
Almost no diversification
The correlation between Dynamic Opportunity Fund and DJI is 0.93 (i.e., Almost no diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Dynamic Opportunity Fund 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 Dynamic Opportunity Fund. 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 gross domestic product.