Davidson Multi-cap Correlations

DFMIX Fund  USD 34.78  0.40  1.16%   
The current 90-days correlation between Davidson Multi Cap and World Energy Fund is 0.23 (i.e., Modest diversification). The correlation of Davidson Multi-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.

Davidson Multi-cap Correlation With Market

Very weak diversification

The correlation between Davidson Multi Cap Equity and DJI is 0.51 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Davidson Multi Cap Equity and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Davidson Multi Cap Equity. 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 gross domestic product.

Moving together with Davidson Mutual Fund

  1.0DFMAX Davidson Multi CapPairCorr
  0.84VTSAX Vanguard Total StockPairCorr
  0.8VFIAX Vanguard 500 IndexPairCorr
  0.83VTSMX Vanguard Total StockPairCorr
  0.96VITSX Vanguard Total StockPairCorr
  0.84VSMPX Vanguard Total StockPairCorr
  0.84VSTSX Vanguard Total StockPairCorr
  0.8VFINX Vanguard 500 IndexPairCorr
  0.8VFFSX Vanguard 500 IndexPairCorr
  0.9VINIX Vanguard InstitutionalPairCorr
  0.9VIIIX Vanguard InstitutionalPairCorr
  0.71BERIX Berwyn IncomePairCorr
  0.67MXECX Great-west CorePairCorr
  0.67APDKX Artisan InternationalPairCorr
  0.68PZVNX Pzena International ValuePairCorr
  0.64SIHSX Guggenheim High YieldPairCorr
  0.65SEBFX Saturna Sustainable BondPairCorr
  0.62HYT Blackrock Corporate HighPairCorr
  0.79DHIYX Diamond Hill InternaPairCorr
  0.66PBBIX Fundvantage TrustPairCorr
  0.78DIEFX Destinations InternationalPairCorr
  0.72JAAAX Alternative AssetPairCorr
  0.61DFCEX Emerging Markets EPairCorr

Moving against Davidson Mutual Fund

  0.64SRPSX Short Real EstatePairCorr

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   
APWEXAIWEX
TMLAXAIWEX
TMLAXAPWEX
TMLAXXGNTX
XGNTXAIWEX
APWEXXGNTX
  
High negative correlations   
PDXXGNTX
TREIXPDX

Risk-Adjusted Indicators

There is a big difference between Davidson Mutual Fund performing well and Davidson Multi-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 Davidson Multi-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.