Hodges Small Correlations

HDSIX Fund  USD 21.95  0.35  1.62%   
The correlation of Hodges Small 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.

Hodges Small Correlation With Market

HodgesDowDiversified AwayHodgesDowDiversified Away100%

Modest diversification

The correlation between Hodges Small Cap and DJI is 0.24 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Hodges Small Cap 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 Hodges Small Cap. 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 gross domestic product.

Moving together with Hodges Mutual Fund

  0.89HDPBX Hodges Blue ChipPairCorr
  0.83HDSVX Hodges Small IntrinsicPairCorr

Moving against Hodges Mutual Fund

  0.52CSAIX Credit Suisse ManagedPairCorr
  0.43SECYX Sdit Ultra ShortPairCorr
  0.31EIFHX Eaton Vance FloatingPairCorr
  0.58SRDBX Stone Ridge DiversifiedPairCorr
  0.41OIBNX Oppenheimer InternationalPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Hodges Mutual Fund performing well and Hodges Small 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 Hodges Small'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.

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