Defensive Market Correlations

GDMYX Fund

USD 11.84 0.05 0.42%

The current 90-days correlation between Defensive Market Str and Davis Financial Fund is 0.4 (i.e., Very weak diversification). The correlation of Defensive Market 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.

Defensive Market Correlation With Market

Significant diversification

The correlation between Defensive Market Strategies and DJI is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Defensive Market Strategies 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 Defensive Market Strategies. 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 manufacturing.

Moving together with Defensive Mutual Fund

0.74	GCOZX	Growth Allocation	Pair Corr
1.0	GDMZX	Defensive Market Str	Pair Corr
0.9	GVEYX	Value Equity Institu	Pair Corr
0.95	GVEZX	Value Equity Investor	Pair Corr
0.91	GVIYX	Guidestone Value Equity	Pair Corr
0.91	GVIZX	Guidestone Value Equity	Pair Corr
0.76	GFIZX	Conservative Allocation	Pair Corr
0.85	GFSYX	Strategic Alternatives	Pair Corr
0.86	GFSZX	Strategic Alternatives	Pair Corr
0.76	GGBZX	Aggressive Allocation	Pair Corr
0.62	GGBEX	Global Bond Fund	Pair Corr
0.88	GGEYX	Guidestone Fds Growth	Pair Corr
0.96	GGEZX	Growth Equity Investor	Pair Corr
0.78	GGIZX	Balanced Allocation	Pair Corr
0.73	GGRYX	Growth Allocation	Pair Corr
0.84	GIEYX	International Equity	Pair Corr
0.87	GIEZX	International Equity	Pair Corr
0.65	GMDYX	Medium Duration Bond	Pair Corr
0.64	GMDZX	Medium Duration Bond	Pair Corr
0.89	GMFZX	Mydestination 2045	Pair Corr
0.93	GMEYX	Guidestone Funds Impact	Pair Corr
0.89	GMEZX	Guidestone Funds Impact	Pair Corr
0.91	GMHYX	Mydestination 2035	Pair Corr
0.91	GMHZX	Mydestination 2035	Pair Corr
0.88	GMGYX	Mydestination 2055	Pair Corr
0.84	GMGZX	Mydestination 2055	Pair Corr

Moving against Defensive Mutual Fund

0.68	GLDZX	Low Duration Bond	Pair Corr
0.65	GLDYX	Low Duration Bond	Pair Corr

Related Correlations Analysis

	DVFYX	FTIXX	MSVIX	FIKBX	FNPIX	MCBXX
DVFYX		0.0	0.67	0.93	0.96	0.0	DVFYX
FTIXX	0.0		0.0	0.0	0.0	0.0	FTIXX
MSVIX	0.67	0.0		0.68	0.5	0.0	MSVIX
FIKBX	0.93	0.0	0.68		0.91	0.0	FIKBX
FNPIX	0.96	0.0	0.5	0.91		0.0	FNPIX
MCBXX	0.0	0.0	0.0	0.0	0.0		MCBXX
	DVFYX	FTIXX	MSVIX	FIKBX	FNPIX	MCBXX

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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

FNPIX	+ 0.96	DVFYX
FIKBX	+ 0.93	DVFYX
FNPIX	+ 0.91	FIKBX
FIKBX	+ 0.68	MSVIX
MSVIX	+ 0.67	DVFYX
FNPIX	+ 0.5	MSVIX

High negative correlations

MCBXX	- 0.0	FNPIX
MCBXX	- 0.0	FIKBX
MCBXX	- 0.0	MSVIX
MCBXX	- 0.0	FTIXX
FNPIX	- 0.0	FTIXX
FIKBX	- 0.0	FTIXX

Risk-Adjusted Indicators

There is a big difference between Defensive Mutual Fund performing well and Defensive Market 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 Defensive Market'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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
DVFYX	0.82	0.10	0.09	2.75	0.95	(0.87)	1.42	(1.39)	9.40
FTIXX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
MSVIX	0.85	(0.10)	0.00	(0.24)	0.00	0.00	1.40	(1.42)	15.14
FIKBX	0.85	0.08	0.07	0.23	1.02	(0.94)	1.66	(1.95)	11.21
FNPIX	1.16	0.16	0.10	4.45	1.38	(1.22)	2.10	(2.50)	13.82
MCBXX	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

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