| BUFDX Fund | | | USD 33.42 0.21 0.62% |
The current 90-days correlation between Buffalo Dividend Focus and Buffalo Emerging Opportunities is 0.87 (i.e., Very poor diversification). The correlation of Buffalo Dividend 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.
Buffalo Dividend Correlation With Market
Good diversification
The correlation between Buffalo Dividend Focus and DJI is -0.01 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Buffalo Dividend Focus 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 Buffalo Dividend Focus. 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 unemployment.