The Arbitrage Correlations

AGEAX Fund  USD 12.01  0.01  0.08%   
The correlation of The Arbitrage 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.

The Arbitrage Correlation With Market

Good diversification

The correlation between The Arbitrage Event Driven and DJI is -0.08 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding The Arbitrage Event Driven and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in The Arbitrage Event Driven. 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 The Mutual Fund

  0.98ARBFX The ArbitragePairCorr
  0.98ARBCX The ArbitragePairCorr
  0.99ARGAX Arbitrage FundPairCorr
  0.91AGCAX Arbitrage CreditPairCorr
  0.91BCLPX Blckrk Lc CrPairCorr
  0.93BALPX Blckrk Lc CrPairCorr
  0.93BILPX Blkrk Lc CrPairCorr
  0.94MERIX Merger FundPairCorr
  0.93MERFX Merger FundPairCorr
  0.91VARAX Vivaldi Merger ArbitragePairCorr
  0.92VARBX Vivaldi Merger ArbitragePairCorr
  0.92VARCX First Trust MergerPairCorr
  0.99ARBNX The ArbitragePairCorr
  0.9PFN Pimco Income StrategyPairCorr
  0.65NXJ Nuveen New JerseyPairCorr
  0.83XPPRX Voya Prime RatePairCorr
  0.92PCF Putnam High IncomePairCorr
  0.74VICSX Vanguard Intermediate-terPairCorr
  0.85DBIWX Dws Global MacroPairCorr
  0.88EBSIX Campbell Systematic MacroPairCorr
  0.86ABNOX Ab Bond InflationPairCorr
  0.82BISMX Brandes InternationalPairCorr
  0.89ARBOX Absolute ConvertiblePairCorr
  0.89HTD John Hancock TaxPairCorr
  0.64USGDX Morgan Stanley GovernmentPairCorr
  0.88UTF Cohen And SteersPairCorr
  0.87GIOIX Guggenheim Macro OppPairCorr
  0.86SGDLX Sprott Gold EquityPairCorr
  0.89DLDFX Destinations Low DurationPairCorr
  0.66PGLSX Global Multi StrategyPairCorr
  0.73HWACX Hotchkis Wiley ValuePairCorr
  0.73HRBDX Harbor Bond FundPairCorr

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   
DVFYXFNPIX
SBFAXFNPIX
SBFAXDVFYX
SBFAXXFINX
FNPIXXFINX
DVFYXXFINX
  
High negative correlations   
JHMXXSBFAX
JHMXXDVFYX
JHMXXFNPIX
JHMXXXFINX
JHMXXHEWXX
SBFAXHEWXX

Risk-Adjusted Indicators

There is a big difference between The Mutual Fund performing well and The Arbitrage 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 The Arbitrage'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.