| HHCAX Fund | | | USD 15.75 0.01 0.06% |
The current 90-days correlation between Highland Long/short and Highland Merger Arbitrage is -0.03 (i.e., Good diversification). The correlation of Highland Long/short 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.
Highland Long/short Correlation With Market
Poor diversification
The correlation between Highland Longshort Healthcare and DJI is 0.67 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Highland Longshort Healthcare 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 Highland Longshort Healthcare. 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 nation.