Royce Micro-cap Correlations

RYOTX Fund  USD 10.53  0.10  0.96%   
The current 90-days correlation between Royce Micro Cap and T Rowe Price is 0.31 (i.e., Weak diversification). The correlation of Royce Micro-cap 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.

Royce Micro-cap Correlation With Market

Weak diversification

The correlation between Royce Micro Cap Fund and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Royce Micro Cap Fund 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 Royce Micro Cap Fund. 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 estimate.
For more information on how to buy Royce Mutual Fund please use our How to Invest in Royce Micro-cap guide.

Moving together with Royce Mutual Fund

  0.81RSEFX Royce Special EquityPairCorr
  0.78RDVIX Royce Dividend ValuePairCorr
  0.71RVPHX Royce Smaller CompaniesPairCorr
  0.79RVVHX Royce Small CapPairCorr
  0.96RYDVX Royce Dividend ValuePairCorr
  0.98RYOFX Royce OpportunityPairCorr
  0.98RYPNX Royce OpportunityPairCorr
  0.81RYSEX Royce Special EquityPairCorr
  0.8RYTFX Royce Total ReturnPairCorr
  0.95RYTRX Royce Total ReturnPairCorr
  0.83RMCFX Royce Micro CapPairCorr
  0.82PENNX Royce Pennsylvania MutualPairCorr

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   
DBELXTRZFX
SMAAXTRZFX
SMAAXDBELX
DSHXXTRZFX
FUIXXTRZFX
IVMXXTRZFX
  
High negative correlations   
PCEXXBMMIX
PCEXXIVMXX
BMMIXIVMXX
PCEXXFUIXX
BMMIXFUIXX
IVMXXFUIXX

Risk-Adjusted Indicators

There is a big difference between Royce Mutual Fund performing well and Royce Micro-cap 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 Royce Micro-cap'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.