| MEQAX Fund | | | USD 8.90 0.11 1.25% |
The current 90-days correlation between International Value and Small Cap Growth is 0.4 (i.e., Very weak diversification). The correlation of International Value 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.
International Value Correlation With Market
Weak diversification
The correlation between International Value Fund and DJI is 0.37 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding International Value Fund and DJI in the same portfolio, assuming nothing else is changed.
Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in International Value 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 nation.