| SUBFX Fund | | | USD 12.49 0.08 0.64% |
The current 90-days correlation between Scout Unconstrained Bond and Small Cap Value Series is 0.1 (i.e., Average diversification). The correlation of Scout Unconstrained 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.
Scout Unconstrained Correlation With Market
Significant diversification
The correlation between Scout Unconstrained Bond and DJI is 0.03 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Scout Unconstrained Bond 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 Scout Unconstrained Bond. 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 census.