Morningstar Correlations

MSTQX Fund

USD 12.43 0.03 0.24%

The current 90-days correlation between Morningstar Equity and Applied Finance Explorer is 0.57 (i.e., Very weak diversification). The correlation of Morningstar 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.

Morningstar Correlation With Market

Very weak diversification

The correlation between Morningstar Equity and DJI is 0.5 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Morningstar Equity 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 Morningstar 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 producer price index.

For more information on how to buy Morningstar Mutual Fund please use our How to Invest in Morningstar guide.

Moving together with Morningstar Mutual Fund

0.7	MSTSX	Morningstar Unconstrained	Pair Corr
0.71	VTSAX	Vanguard Total Stock	Pair Corr
0.69	VFIAX	Vanguard 500 Index	Pair Corr
0.71	VTSMX	Vanguard Total Stock	Pair Corr
0.71	VITSX	Vanguard Total Stock	Pair Corr
0.71	VSMPX	Vanguard Total Stock	Pair Corr
0.71	VSTSX	Vanguard Total Stock	Pair Corr
0.69	VFINX	Vanguard 500 Index	Pair Corr
0.69	VFFSX	Vanguard 500 Index	Pair Corr
0.75	VINIX	Vanguard Institutional	Pair Corr
0.75	VIIIX	Vanguard Institutional	Pair Corr

Moving against Morningstar Mutual Fund

0.55	PSDNX	Putnam Ultra Short	Pair Corr
0.51	MSTBX	Morningstar Defensive	Pair Corr
0.51	VTAPX	Vanguard Short Term	Pair Corr
0.5	GF	New Germany Closed	Pair Corr
0.46	CIHCX	Cullen International High	Pair Corr
0.41	UTF	Cohen And Steers	Pair Corr
0.37	MSTVX	Morningstar Alternatives	Pair Corr
0.37	GIOIX	Guggenheim Macro Opp	Pair Corr
0.34	MSTRX	Morningstar Total Return	Pair Corr
0.34	FFLQX	Franklin Federal Lim	Pair Corr
0.53	VSGDX	Vanguard Short Term	Pair Corr
0.49	ARBOX	Absolute Convertible	Pair Corr
0.48	DLDFX	Destinations Low Duration	Pair Corr
0.46	BISMX	Brandes International	Pair Corr
0.45	EPDPX	Europac International	Pair Corr
0.44	LIRRX	Lord Abbett International	Pair Corr
0.42	ABNOX	Ab Bond Inflation	Pair Corr
0.41	MFAAX	American Funds Mortgage	Pair Corr

Related Correlations Analysis

	AFDVX	RRMVX	ABYSX	VSFSX	ARSMX	LVAQX	SMVTX
AFDVX		0.94	0.99	0.98	0.89	0.96	0.95	AFDVX
RRMVX	0.94		0.96	0.95	0.84	0.86	0.93	RRMVX
ABYSX	0.99	0.96		0.99	0.87	0.94	0.95	ABYSX
VSFSX	0.98	0.95	0.99		0.87	0.95	0.95	VSFSX
ARSMX	0.89	0.84	0.87	0.87		0.88	0.91	ARSMX
LVAQX	0.96	0.86	0.94	0.95	0.88		0.93	LVAQX
SMVTX	0.95	0.93	0.95	0.95	0.91	0.93		SMVTX
	AFDVX	RRMVX	ABYSX	VSFSX	ARSMX	LVAQX	SMVTX

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Risk-Adjusted Indicators

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

	Mean Deviation	Jensen Alpha	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
AFDVX	0.81	(0.11)	(0.19)	1.55	(1.93)	4.58
RRMVX	0.71	(0.04)	(0.12)	1.21	(1.60)	3.46
ABYSX	0.85	(0.10)	(0.17)	1.38	(2.08)	4.03
VSFSX	0.87	(0.10)	(0.17)	1.48	(2.07)	5.18
ARSMX	0.82	(0.17)	(0.29)	1.13	(1.56)	8.46
LVAQX	0.83	(0.14)	(0.24)	1.18	(1.87)	3.80
SMVTX	1.01	(0.15)	(0.22)	1.39	(2.22)	9.55

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