| GDLFX Fund | | | USD 18.86 0.17 0.89% |
The current 90-days correlation between Gotham Defensive Long and Neuberger Berman Long is 0.68 (i.e., Poor diversification). The correlation of Gotham Defensive 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.
Gotham Defensive Correlation With Market
Poor diversification
The correlation between Gotham Defensive Long and DJI is 0.7 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gotham Defensive Long 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 Gotham Defensive Long. 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 census.