| IMCGX Fund | | | USD 10.82 0.18 1.69% |
The current 90-days correlation between Transamerica Mid Cap and Ironclad Managed Risk is 0.02 (i.e., Significant diversification). The correlation of Transamerica Mid 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.
Transamerica Mid Correlation With Market
Modest diversification
The correlation between Transamerica Mid Cap and DJI is 0.23 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Mid 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 Transamerica Mid 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 price.