| MIGPX Fund | | | USD 17.74 0.03 0.17% |
The current 90-days correlation between Global Advantage Por and Ridgeworth Innovative Growth is 0.72 (i.e., Poor diversification). The correlation of Global Advantage 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.
Global Advantage Correlation With Market
Very weak diversification
The correlation between Global Advantage Portfolio and DJI is 0.54 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Global Advantage Portfolio and DJI in the same portfolio, assuming nothing else is changed.
Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Global Advantage Portfolio. 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 american community survey.