Redwood Managed Correlations

RWDYX Fund

USD 11.56 0.02 0.17%

The current 90-days correlation between Redwood Managed Vola and Redwood Managed Municipal is 0.06 (i.e., Significant diversification). The correlation of Redwood Managed 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.

Redwood Managed Correlation With Market

Very weak diversification

The correlation between Redwood Managed Volatility 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 Redwood Managed Volatility and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Redwood Managed Volatility. 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 Redwood Mutual Fund

1.0	RWDNX	Redwood Managed Vola	Pair Corr
1.0	RWDIX	Redwood Managed Vola	Pair Corr
0.88	RWIIX	Redwood Alphafactor	Pair Corr
0.88	RWINX	Redwood Alphafactor	Pair Corr
0.88	BSIKX	Blackrock Strategic	Pair Corr
0.92	BSICX	Blackrock Strategic Opps	Pair Corr
0.92	BASIX	Blackrock Strategic Opps	Pair Corr
0.92	BSIIX	Blackrock Strategic	Pair Corr
0.78	JSORX	Jpmorgan Strategic Income	Pair Corr
0.78	JSOZX	Jpmorgan Strategic Income	Pair Corr
0.78	JSOCX	Jpmorgan Strategic Income	Pair Corr
0.79	JSOSX	Jpmorgan Strategic Income	Pair Corr
0.77	JSOAX	Jpmorgan Strategic Income	Pair Corr
0.81	PMZCX	Pimco Mortgage Oppor	Pair Corr
0.8	MBFAX	Total Return Bond	Pair Corr
0.77	PZINX	Pzena International Value	Pair Corr
0.75	RGGHX	American Funds Global	Pair Corr
0.74	JOEAX	Johcm Emerging Markets	Pair Corr
0.86	PWRCX	Power Income	Pair Corr
0.8	USGNX	Government Securities	Pair Corr
0.8	BIGCX	Blackrock Gov Bd	Pair Corr
0.83	WIISX	William Blair Intern	Pair Corr
0.84	PSJIX	Short Term Income	Pair Corr
0.76	VWTAX	Tomorrows Scholar College	Pair Corr
0.69	MYN	Blackrock Muniyield New	Pair Corr

Moving against Redwood Mutual Fund

0.4	ASG	Liberty All Star	Pair Corr
0.36	RWSIX	Redwood Systematic Macro	Pair Corr
0.33	RWSNX	Redwood Systematic Macro	Pair Corr
0.72	IIF	Morgan Stanley India	Pair Corr
0.42	IFN	India Closed	Pair Corr
0.31	CRF	Cornerstone Strategic	Pair Corr

Related Correlations Analysis

	RWMIX	RWSIX	RWIIX	RWDIX	LSAT
RWMIX		0.0	0.1	0.42	0.31	RWMIX
RWSIX	0.0		-0.48	-0.36	0.72	RWSIX
RWIIX	0.1	-0.48		0.87	-0.14	RWIIX
RWDIX	0.42	-0.36	0.87		0.11	RWDIX
LSAT	0.31	0.72	-0.14	0.11		LSAT
	RWMIX	RWSIX	RWIIX	RWDIX	LSAT

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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

RWDIX	+ 0.87	RWIIX
LSAT	+ 0.72	RWSIX
RWDIX	+ 0.42	RWMIX
LSAT	+ 0.31	RWMIX
LSAT	+ 0.11	RWDIX
RWIIX	+ 0.1	RWMIX

High negative correlations

RWIIX	- 0.48	RWSIX
RWDIX	- 0.36	RWSIX
LSAT	- 0.14	RWIIX
RWSIX	- 0.0	RWMIX

Risk-Adjusted Indicators

There is a big difference between Redwood Mutual Fund performing well and Redwood Managed 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 Redwood Managed'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	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
RWMIX	0.04	(0.01)	0.00	1.63	0.00	0.00	0.07	(0.22)	0.72
RWSIX	0.69	(0.10)	0.00	(0.13)	0.00	0.00	1.15	(1.45)	6.78
RWIIX	0.53	0.10	0.14	0.23	0.58	(0.53)	1.41	(1.22)	3.67
RWDIX	0.11	0.00	0.03	0.04	0.08	(0.15)	0.18	(0.26)	0.89
LSAT	0.70	0.00	0.00	0.00	0.89	(0.71)	1.42	(1.55)	3.43

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