High Yield Correlations

MNHYX Fund  USD 9.86  0.01  0.10%   
The current 90-days correlation between High Yield Bond and High Yield Bond is 0.97 (i.e., Almost no diversification). The correlation of High Yield 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.

High Yield Correlation With Market

Very weak diversification

The correlation between High Yield Bond and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Bond 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 High Yield Bond. 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 manufacturing.

Moving together with High Mutual Fund

  0.8MNBAX Pro-blend(r) ExtendedPairCorr
  0.81MNBIX Pro-blend(r) ExtendedPairCorr
  0.76MNCPX Unconstrained Bond SeriesPairCorr
  0.87MNCRX Pro-blend(r) ConservativePairCorr
  0.88MNCWX Manning Napier ProPairCorr
  0.82MNDFX Disciplined Value SeriesPairCorr
  0.8MNBRX Pro-blend(r) ExtendedPairCorr
  0.83MNBWX Manning Napier ProPairCorr
  0.86MNCCX Pro-blend(r) ConservativePairCorr
  0.88MNCIX Pro-blend(r) ConservativePairCorr
  0.77MNDWX Manning Napier DiverPairCorr
  0.78MNECX Pro-blend(r) ExtendedPairCorr
  1.0MNHAX High Yield BondPairCorr
  0.84MNMCX Pro-blend(r) ModeratePairCorr
  0.87MNMIX Pro-blend(r) ModeratePairCorr
  0.86MNMRX Pro-blend(r) ModeratePairCorr
  0.88MNMWX Manning Napier ProPairCorr
  0.88MNOSX Manning Napier OverseasPairCorr
  0.88MNOWX Manning Napier OverseasPairCorr
  0.87MNOZX Manning Napier OverseasPairCorr
  0.68RAIIX Rainier InternationalPairCorr
  0.68RAIRX Rainier InternationalPairCorr
  0.66RAIWX Manning Napier RainierPairCorr
  0.69MCDIX Manning Napier CreditPairCorr
  0.69MCBWX Manning Napier CorePairCorr
  0.7MCBZX Manning Napier CorePairCorr
  0.67MCDSX Manning Napier CreditPairCorr
  0.71MCDWX Manning Napier CreditPairCorr
  0.75MUBWX Manning Napier UnconPairCorr
  0.81MDFSX Disciplined Value SeriesPairCorr
  0.72MDVWX Manning Napier DisciPairCorr
  0.82MDVZX Manning Napier DisciPairCorr

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   
SHOAXMNHAX
SHOAXARTFX
ARTFXMNHAX
RYHGXMNHAX
SHOAXRYHGX
RYHGXARTFX
  
High negative correlations   
SHOAXTGHNX
RYHGXTGHNX
TGHNXARTFX
TGHNXMNHAX

Risk-Adjusted Indicators

There is a big difference between High Mutual Fund performing well and High Yield 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 High Yield'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.