Gmo Global Correlations

GMWAX Fund  USD 35.40  0.16  0.45%   
The current 90-days correlation between Gmo Global Asset and Us Government Securities is -0.11 (i.e., Good diversification). The correlation of Gmo Global 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.

Gmo Global Correlation With Market

Almost no diversification

The correlation between Gmo Global Asset and DJI is 0.92 (i.e., Almost no diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Global Asset and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gmo Global Asset. 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 Gmo Mutual Fund

  0.91GUSOX Gmo TrustPairCorr
  0.89GUSTX Gmo TreasuryPairCorr
  0.93GEACX Gmo Trust Steady GrowthPairCorr
  0.99GEMEX Gmo Emerging MarketsPairCorr
  0.99GEMMX Gmo Emerging MarketsPairCorr
  0.99GEMNX Gmo Emerging MarketsPairCorr
  0.97GWOAX Gmo Global DevelopedPairCorr
  0.96IOVFX Gmo InternationalPairCorr
  0.97GHVIX Gmo High YieldPairCorr
  0.99GIEAX Gmo International EquityPairCorr
  0.99GIMFX Gmo ImplementationPairCorr
  0.98GIOTX Gmo InternationalPairCorr
  0.96GMAWX Gmo Small CapPairCorr
  0.96GMAYX Gmo Small CapPairCorr
  0.96GMAZX Gmo InternationalPairCorr
  0.97GMBCX Gmo InternationalPairCorr
  1.0GMADX Gmo Global EquityPairCorr
  0.97GMAHX Gmo Usonian JapanPairCorr
  0.97GMAKX Gmo Usonian JapanPairCorr
  0.97GMAQX Gmo Emerging MarketsPairCorr
  0.97GMAUX Gmo Emerging MarketsPairCorr
  0.92GMDFX Gmo Emerging CountryPairCorr
  0.92GMCDX Gmo Emerging NtryPairCorr
  0.97GMCFX Gmo International EquityPairCorr
  0.95GMCQX Gmo Equity AllocationPairCorr
  0.99GMEMX Gmo Emerging MarketsPairCorr
  1.0GMGEX Gmo Global EquityPairCorr
  0.97GMIIX Gmo Usonian JapanPairCorr
  0.78GMODX Gmo Opportunistic IncomePairCorr
  0.99GMOEX Gmo Emerging MarketsPairCorr
  0.79GMOHX Gmo Opportunistic IncomePairCorr
  0.96GMOIX Gmo International EquityPairCorr
  0.8GMOLX Gmo Opportunistic IncomePairCorr
  1.0GMOOX Gmo Global AssetPairCorr
  0.91PPADX Gmo TrustPairCorr
  0.97PPAEX Gmo TrustPairCorr
  0.97PPAJX Gmo Opportunistic ValuePairCorr

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   
AUGAXUSGFX
FISAXFCSCX
DPIGXFCSCX
DPIGXFISAX
DPIGXAUGAX
DPIGXUSGFX
  
High negative correlations   
RYAQXUSGFX
RYAQXAUGAX

Risk-Adjusted Indicators

There is a big difference between Gmo Mutual Fund performing well and Gmo Global 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 Gmo Global'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.