Small Cap Correlations

VCSLX Fund  USD 15.88  0.22  1.37%   
The current 90-days correlation between Small Cap Index and Baird E Intermediate is 0.2 (i.e., Modest 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

Poor diversification

The correlation between Small Cap Index and DJI is 0.65 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Index and DJI in the same portfolio, assuming nothing else is changed.
  
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Small Cap Index. 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 bureau of economic analysis.

Moving together with Small Mutual Fund

  0.98VMIDX Mid Cap IndexPairCorr
  0.97VMSGX Mid Cap StrategicPairCorr
  0.97VAPPX Valic Company IPairCorr
  0.86VSTIX Stock Index FundPairCorr
  0.74VSSVX Small Cap SpecialPairCorr
  0.98VBCVX Broad Cap ValuePairCorr
  0.99VCAAX Asset AllocationPairCorr
  0.66VCBDX Valic Company IPairCorr
  0.97VCBCX Blue Chip GrowthPairCorr
  0.99VCGAX Growth IncomePairCorr
  0.83VCGEX Emerging EconomiesPairCorr
  0.92VCFVX Foreign ValuePairCorr
  0.9VCIEX International EquitiesPairCorr
  0.7VCIFX International GovernmentPairCorr
  0.99VCIGX Valic Company IPairCorr
  0.88VCINX International GrowthPairCorr
  0.97VCNIX Nasdaq 100 IndexPairCorr
  0.97VCSTX Science TechnologyPairCorr
  0.67VCTPX Inflation ProtectedPairCorr
  0.91VCSOX Global Social AwarenessPairCorr
  0.86VCULX Growth Fund GrowthPairCorr
  0.86VDAFX Dynamic AllocationPairCorr
  0.86VVMCX Valic Company IPairCorr
  0.87VVSGX Valic Company IPairCorr
  0.98VVSCX Valic Company IPairCorr
  0.97VGLSX Global StrategyPairCorr
  0.77VGREX Global Real EstatePairCorr
  0.97VHYLX Valic Company IPairCorr
  0.98VLAGX Valic Company IPairCorr
  0.98VLCGX Large Capital GrowthPairCorr
  0.98VLSMX Valic Company IPairCorr
  0.99VSCIX Vanguard Small CapPairCorr
  0.85VSCPX Vanguard Small CapPairCorr
  0.99NAESX Vanguard Small CapPairCorr
  1.0FSSNX Fidelity Small CapPairCorr

Related Correlations Analysis

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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   
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BSHIXBMNSX
CFNLXBMNSX
TWTIXBSHIX
CFNLXBSHIX
BIDPXBSHIX
  
High negative correlations   
TUGXXBMBSX

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.