Russell 2000 Correlations

RYMKX Fund  USD 64.08  0.49  0.77%   
The correlation of Russell 2000 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.

Russell 2000 Correlation With Market

Very poor diversification

The correlation between Russell 2000 15x and DJI is 0.84 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Russell 2000 15x 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 Russell 2000 15x. 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 industry.

Moving together with Russell Mutual Fund

  0.82RYBKX Banking Fund ClassPairCorr
  0.96RYBHX Sp Midcap 400PairCorr
  0.86RYAKX Russell 2000 15xPairCorr
  0.66RYAQX Inverse Government LongPairCorr
  0.7RYATX Nasdaq 100 FundPairCorr
  0.99RYAZX Sp Smallcap 600PairCorr
  0.92RYAWX Sp 500 PurePairCorr
  0.98RYAVX Sp Midcap 400PairCorr
  0.99RYDCX Mid Cap 15xPairCorr
  0.89RYCCX Nasdaq 100 2x Steady GrowthPairCorr
  0.86RYCMX Russell 2000 15xPairCorr
  0.7RYCOX Nasdaq 100 FundPairCorr
  0.82RYCVX Dow 2x StrategyPairCorr
  0.91RYCYX Dow 2x StrategyPairCorr
  0.95RYFNX Financial ServicesPairCorr
  0.82RYFIX Financial ServicesPairCorr
  0.7RYESX Energy ServicesPairCorr
  0.72RYENX Energy Fund ClassPairCorr
  0.7RYHOX Nasdaq 100 FundPairCorr
  0.66RYHJX Inverse Government LongPairCorr
  0.83RYKAX Banking Fund ClassPairCorr
  0.83RYKCX Banking Fund ClassPairCorr
  0.82RYKIX Banking Fund InvestorPairCorr

Moving against Russell Mutual Fund

  0.88RYAIX Inverse Nasdaq 100PairCorr
  0.86RYCLX Inverse Mid CapPairCorr
  0.82RYCWX Inverse Dow 2xPairCorr
  0.78RYCBX Inverse Sp 500PairCorr
  0.77RYARX Inverse Sp 500PairCorr
  0.7RYEUX Europe 125x StrategyPairCorr
  0.42RYHAX Health Care FundPairCorr
  0.42RYHIX Health Care FundPairCorr
  0.33RYJTX Japan 2x Strategy Steady GrowthPairCorr
  0.32RYJHX Japan 2x Strategy Steady GrowthPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Russell Mutual Fund performing well and Russell 2000 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 Russell 2000'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.