| STBNX Fund | | | USD 26.67 0.03 0.11% |
The current 90-days correlation between Sierra Tactical Bond and Iaadx is 0.21 (i.e., Modest diversification). The correlation of Sierra Tactical 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.
Sierra Tactical Correlation With Market
Very weak diversification
The correlation between Sierra Tactical Bond and DJI is 0.46 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sierra Tactical Bond and DJI in the same portfolio, assuming nothing else is changed.
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World Market Map to better understand how to build diversified portfolios, which includes a position in Sierra Tactical Bond. 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 board of governors.