| SDSI Etf | | | USD 51.14 0.03 0.06% |
The current 90-days correlation between American Century Short and iShares 5 10 Year is 0.71 (i.e., Poor diversification). The correlation of American Century 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.
American Century Correlation With Market
Good diversification
The correlation between American Century Short and DJI is -0.09 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Century Short and DJI in the same portfolio, assuming nothing else is changed.
Check out
World Market Map to better understand how to build diversified portfolios, which includes a position in American Century Short. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as
signals in state.