| MGGPX Fund | | | USD 36.44 0.24 0.66% |
The current 90-days correlation between Global Opportunity and Morgan Stanley Multi is -0.01 (i.e., Good diversification). The correlation of Global Opportunity 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.
Global Opportunity Correlation With Market
Poor diversification
The correlation between Global Opportunity Portfolio and DJI is 0.65 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Global Opportunity Portfolio 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 Global Opportunity Portfolio. 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 american community survey.