Gmo Quality Correlations

GQEFX Fund  USD 34.41  0.09  0.26%   
The current 90-days correlation between Gmo Quality Fund and Arrow Managed Futures is 0.23 (i.e., Modest diversification). The correlation of Gmo Quality 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 Quality Correlation With Market

Weak diversification

The correlation between Gmo Quality Fund and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gmo Quality Fund 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 Quality Fund. 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.

Moving together with Gmo Mutual Fund

  0.63GWOAX Gmo Global DevelopedPairCorr
  0.89GMAWX Gmo Small Cap Potential GrowthPairCorr
  0.64GMAQX Gmo Emerging MarketsPairCorr
  0.66GMAUX Gmo Emerging MarketsPairCorr
  0.78GMCQX Gmo Equity AllocationPairCorr
  0.72GMGEX Gmo Global EquityPairCorr
  0.66GMOEX Gmo Emerging MarketsPairCorr
  0.66GMOWX Gmo ResourcesPairCorr
  0.93GQESX Gmo Quality FundPairCorr
  0.63NHS Neuberger Berman HighPairCorr
  0.8GMWAX Gmo Global AssetPairCorr
  0.8NCLEX Nicholas EditionPairCorr
  0.69WABIX Wells Fargo AdvantagePairCorr

Moving against Gmo Mutual Fund

  0.34GGNPX Goldman Sachs HighPairCorr

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   
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High negative correlations   
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Risk-Adjusted Indicators

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