Amana Developing Correlations

AMIDX Fund  USD 13.03  0.29  2.18%   
The current 90-days correlation between Amana Developing World and Amana Growth Fund is 0.76 (i.e., Poor diversification). The correlation of Amana Developing 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.

Amana Developing Correlation With Market

Good diversification

The correlation between Amana Developing World and DJI is -0.06 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Amana Developing World 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 Amana Developing World. 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 unemployment.

Moving together with Amana Mutual Fund

  0.78AMDWX Amana Developing WorldPairCorr
  0.71AMAGX Amana GrowthPairCorr
  0.62FWWNX American Funds New Potential GrowthPairCorr
  0.62FNFWX American Funds New Potential GrowthPairCorr
  0.62NEWFX New World FundPairCorr
  0.62NWFFX New World Fund Potential GrowthPairCorr
  0.64NEWCX New World FundPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Risk-Adjusted Indicators

There is a big difference between Amana Mutual Fund performing well and Amana Developing 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 Amana Developing'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.