| FAMEX Fund | | | USD 55.78 0.09 0.16% |
The current 90-days correlation between Fam Equity Income and Small Cap Value Profund is 0.8 (i.e., Very poor diversification). The correlation of Fam Equity-income 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.
Fam Equity-income Correlation With Market
Poor diversification
The correlation between Fam Equity Income Fund and DJI is 0.73 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fam Equity Income Fund and DJI in the same portfolio, assuming nothing else is changed.
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Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fam Equity Income Fund. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as various price indices.