High Yield Correlations

RYHGX Fund  USD 121.76  0.23  0.19%   
The current 90-days correlation between High Yield Strategy and Inverse High Yield is -1.0 (i.e., Pay attention - limited upside). 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 Strategy and DJI is 0.41 (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 Strategy 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 High Yield Strategy. 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 price.

Moving together with High Mutual Fund

  0.64RYBKX Banking Fund ClassPairCorr
  0.64RYABX Government Long Bond Steady GrowthPairCorr
  0.81RYAEX Europe 125x StrategyPairCorr
  0.71RYAUX Utilities Fund ClassPairCorr
  0.72RYDHX Dow Jones IndustrialPairCorr
  0.64RYDKX Dow Jones IndustrialPairCorr
  0.74RYCEX Europe 125x StrategyPairCorr
  0.67RYCGX Government Long Bond Steady GrowthPairCorr

Moving against High Mutual Fund

  0.52RYAQX Inverse Government LongPairCorr
  0.67RYCWX Inverse Dow 2xPairCorr
  0.66RYCZX Inverse Dow 2xPairCorr

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   
RYHRXRYGBX
RYAWXFYAIX
RYHRXFYAIX
RYGBXFYAIX
RYAWXRYHRX
RYAWXRYGBX
  
High negative correlations   
RYGBXRYIHX
RYHRXRYIHX
FYAIXRYIHX
RYAWXRYIHX

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.