High Yield Correlations

AHYRX Fund  USD 5.15  0.01  0.19%   
The current 90-days correlation between High Yield Fund and Strategic Advisers Income is 0.58 (i.e., Very weak diversification). 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 Fund R and DJI is 0.42 (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 Fund R 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 High Yield Fund R. 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 metropolitan statistical area.

Moving together with High Mutual Fund

  0.9BHYCX Blackrock Hi YldPairCorr
  0.9BHYIX Blackrock High YieldPairCorr
  0.98BHYAX Blackrock High YieldPairCorr
  0.89FAHHX American Funds AmericanPairCorr
  0.89FTAHX American Funds AmericanPairCorr
  0.89AHTFX American High IncomePairCorr

Moving against High Mutual Fund

  0.63MCD McDonaldsPairCorr
  0.47TRV The Travelers CompaniesPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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.