High Yield Correlations

AHYDX Fund

USD 5.13 0.01 0.19%

The current 90-days correlation between High Yield Fund and High Yield Municipal Fund is 0.46 (i.e., Very weak diversification). The correlation of High Yield 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.

High Yield Correlation With Market

Significant diversification

The correlation between High Yield Fund R6 and DJI is 0.08 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Fund R6 and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in High Yield Fund R6. 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 unemployment.

Moving together with High Mutual Fund

0.72	TWBIX	Balanced Fund Investor	Pair Corr
0.61	TWTIX	Intermediate Term Tax	Pair Corr
0.8	TWSCX	Strategic Allocation	Pair Corr
0.7	TWSAX	Strategic Allocation	Pair Corr
0.74	TWSMX	Strategic Allocation	Pair Corr
0.94	NPHIX	High Income Fund	Pair Corr

Related Correlations Analysis

	ABHYX	ADFIX	BGNMX	BULIX	TWMIX
ABHYX		0.48	0.49	0.3	0.07	ABHYX
ADFIX	0.48		1.0	-0.23	0.15	ADFIX
BGNMX	0.49	1.0		-0.25	0.12	BGNMX
BULIX	0.3	-0.23	-0.25		0.29	BULIX
TWMIX	0.07	0.15	0.12	0.29		TWMIX
	ABHYX	ADFIX	BGNMX	BULIX	TWMIX

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

BGNMX	+ 1.0	ADFIX
BGNMX	+ 0.49	ABHYX
ADFIX	+ 0.48	ABHYX
BULIX	+ 0.3	ABHYX
TWMIX	+ 0.29	BULIX
TWMIX	+ 0.15	ADFIX

High negative correlations

BULIX	- 0.25	BGNMX
BULIX	- 0.23	ADFIX

Risk-Adjusted Indicators

There is a big difference between High Mutual Fund performing well and High Yield Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze High Yield's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ABHYX	0.17	0.00	(0.24)	0.07	0.26	(0.23)	0.34	(0.33)	1.91
ADFIX	0.22	(0.05)	0.00	(0.50)	0.00	0.00	0.33	(0.55)	1.20
BGNMX	0.24	(0.05)	0.00	(0.52)	0.00	0.00	0.34	(0.56)	1.36
BULIX	0.85	0.01	(0.07)	0.16	0.97	(0.96)	1.74	(1.92)	5.42
TWMIX	0.73	0.05	(0.07)	(5.13)	0.84	(0.86)	1.55	(1.62)	4.79

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