Applied Finance Correlations

AFDZX Fund

USD 23.28 0.04 0.17%

The current 90-days correlation between Applied Finance Explorer and Applied Finance Core is 0.84 (i.e., Very poor diversification). The correlation of Applied Finance 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.

Applied Finance Correlation With Market

Poor diversification

The correlation between Applied Finance Explorer and DJI is 0.77 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Applied Finance Explorer and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Applied Finance Explorer. 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 nation.

Moving together with Applied Mutual Fund

1.0	AFDVX	Applied Finance Explorer	Pair Corr
0.9	VSIIX	Vanguard Small Cap	Pair Corr
0.9	VISVX	Vanguard Small Cap	Pair Corr
0.97	DFSVX	Us Small Cap	Pair Corr
0.98	DFFVX	Us Targeted Value	Pair Corr
0.76	UBVCX	Undiscovered Managers	Pair Corr
0.76	UBVAX	Undiscovered Managers	Pair Corr
0.76	UBVSX	Undiscovered Managers	Pair Corr
0.97	AVFIX	American Beacon Small	Pair Corr
0.65	SVPIX	Small Cap Value	Pair Corr

Moving against Applied Mutual Fund

0.31

FIUIX

Fidelity Telecom And

Pair Corr

Related Correlations Analysis

	AFALX	AFAZX	AFDVX	AFVZX	AFVLX
AFALX		1.0	0.67	-0.06	-0.06	AFALX
AFAZX	1.0		0.67	-0.04	-0.04	AFAZX
AFDVX	0.67	0.67		0.27	0.28	AFDVX
AFVZX	-0.06	-0.04	0.27		1.0	AFVZX
AFVLX	-0.06	-0.04	0.28	1.0		AFVLX
	AFALX	AFAZX	AFDVX	AFVZX	AFVLX

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

AFAZX	+ 1.0	AFALX
AFVLX	+ 1.0	AFVZX
AFDVX	+ 0.67	AFALX
AFDVX	+ 0.67	AFAZX
AFVLX	+ 0.28	AFDVX
AFVZX	+ 0.27	AFDVX

High negative correlations

AFVLX	- 0.06	AFALX
AFVZX	- 0.06	AFALX
AFVLX	- 0.04	AFAZX
AFVZX	- 0.04	AFAZX

Risk-Adjusted Indicators

There is a big difference between Applied Mutual Fund performing well and Applied Finance 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 Applied Finance'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
AFALX	0.47	(0.04)	(0.09)	0.01	0.59	(0.50)	0.94	(0.84)	3.79
AFAZX	0.47	(0.04)	(0.09)	0.02	0.58	(0.51)	1.00	(0.82)	3.96
AFDVX	0.68	(0.09)	0.00	(0.01)	0.00	0.00	1.68	(1.30)	6.19
AFVZX	0.54	(0.04)	(0.06)	0.02	0.76	(0.51)	0.94	(0.96)	4.19
AFVLX	0.53	(0.04)	(0.06)	0.02	0.75	(0.52)	0.91	(0.97)	4.22

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