Ariel Focus Correlations

ARFFX Fund

USD 15.62 0.10 0.64%

The current 90-days correlation between Ariel Focus Fund and Ariel Appreciation Fund is 0.93 (i.e., Almost no diversification). The correlation of Ariel Focus 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.

Ariel Focus Correlation With Market

Very poor diversification

The correlation between Ariel Focus Fund and DJI is 0.8 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ariel Focus Fund 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 Ariel Focus 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 census.

Moving together with Ariel Mutual Fund

0.97	ARAIX	Ariel Fund Institutional	Pair Corr
0.97	ARGFX	Ariel Fund Investor	Pair Corr
0.94	AFOYX	Ariel Focus Fund	Pair Corr
0.97	CAAPX	Ariel Appreciation	Pair Corr
0.97	CAAIX	Ariel Appreciation	Pair Corr
0.89	FLPKX	Fidelity Low Priced	Pair Corr
0.89	FLPSX	Fidelity Low Priced	Pair Corr
0.86	VMVAX	Vanguard Mid Cap	Pair Corr
0.96	JVMAX	John Hancock Disciplined	Pair Corr
0.96	JVMIX	John Hancock Disciplined	Pair Corr
0.86	VMVIX	Vanguard Mid Cap	Pair Corr
0.97	JMVZX	Jpmorgan Mid Cap	Pair Corr
0.93	JMVRX	Jpmorgan Mid Cap	Pair Corr
0.97	JMVQX	Jpmorgan Mid Cap	Pair Corr
0.93	JMVYX	Jpmorgan Mid Cap	Pair Corr
0.83	CISGX	Touchstone Sands Capital	Pair Corr
0.65	SMAPX	Salient Mlp Energy	Pair Corr

Moving against Ariel Mutual Fund

0.54	AINTX	Ariel International	Pair Corr
0.54	AINIX	Ariel International	Pair Corr
0.63	ACCOX	International Value	Pair Corr
0.63	GIBLX	Guggenheim Total Return	Pair Corr
0.62	MBOYX	Madison E Bond	Pair Corr
0.61	GCMDX	Goldman Sachs Local	Pair Corr
0.58	UGPSX	Ultrachina Profund	Pair Corr
0.54	UGPIX	Ultrachina Profund	Pair Corr
0.44	PEBIX	Emerging Markets Bond	Pair Corr
0.44	FITFX	Fidelity Flex Intern	Pair Corr
0.41	PMPIX	Precious Metals Ultr Steady Growth	Pair Corr
0.35	FPNTX	Nuveen Pennsylvania	Pair Corr
0.31	BLSIX	Blackrock Emerging	Pair Corr
0.71	QGMNX	Aqr Global Macro	Pair Corr
0.64	SAMFX	Ridgeworth Seix Total	Pair Corr

Related Correlations Analysis

	CAAPX	ARGFX	AGLOX	AINTX	WPOPX
CAAPX		0.99	-0.11	-0.5	0.85	CAAPX
ARGFX	0.99		-0.17	-0.56	0.82	ARGFX
AGLOX	-0.11	-0.17		0.83	0.31	AGLOX
AINTX	-0.5	-0.56	0.83		-0.05	AINTX
WPOPX	0.85	0.82	0.31	-0.05		WPOPX
	CAAPX	ARGFX	AGLOX	AINTX	WPOPX

Click cells to compare fundamentals

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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

ARGFX	+ 0.99	CAAPX
WPOPX	+ 0.85	CAAPX
AINTX	+ 0.83	AGLOX
WPOPX	+ 0.82	ARGFX
WPOPX	+ 0.31	AGLOX

High negative correlations

AINTX	- 0.56	ARGFX
AINTX	- 0.5	CAAPX
AGLOX	- 0.17	ARGFX
AGLOX	- 0.11	CAAPX
WPOPX	- 0.05	AINTX

Risk-Adjusted Indicators

There is a big difference between Ariel Mutual Fund performing well and Ariel Focus 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 Ariel Focus' 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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
CAAPX	0.83	(0.05)	0.00	(0.12)	0.00	0.00	1.26	(2.09)	4.37
ARGFX	0.85	(0.05)	0.00	(0.12)	0.00	0.00	1.53	(2.14)	4.57
AGLOX	0.63	0.12	0.23	1.07	0.62	(0.72)	1.31	(1.29)	3.80
AINTX	0.73	0.26	0.36	0.43	0.52	(0.85)	1.65	(1.47)	4.60
WPOPX	0.58	0.02	0.00	(0.04)	0.00	0.00	0.97	(1.31)	3.34

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