Small Cap Correlations

SCRYX Fund  USD 12.03  0.20  1.64%   
The current 90-days correlation between Small Cap Core and Tiaa Cref Inflation Link is -0.22 (i.e., Very good diversification). The correlation of Small Cap 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.

Small Cap Correlation With Market

Very poor diversification

The correlation between Small Cap Core and DJI is 0.84 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Core and DJI in the same portfolio, assuming nothing else is changed.
  
Check out World Market Map to better understand how to build diversified portfolios. 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 manufacturing.

Moving together with Small Mutual Fund

  0.84GCECX Ab Global EPairCorr
  0.95AMTOX Ab All MarketPairCorr
  0.67ANAZX Ab Global BondPairCorr
  0.68ANBIX Ab Bond InflationPairCorr
  0.99SCYVX Ab Small CapPairCorr
  0.99APWIX Ab Servative WealthPairCorr
  0.97ASCLX Ab Select LongshortPairCorr

Moving against Small Mutual Fund

  0.45ANYCX Ab New YorkPairCorr
  0.48ABIMX Ab Impact MunicipalPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Small Mutual Fund performing well and Small Cap 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 Small Cap'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.