In precise percentage terms, this figure indicates just how closely a security's performance variation paralleled the market over the same time period. Lower figures indicate less correlation with the market, and hence lower significance of the beta statistic. A relative market index is used as a proxy for the market when measuring R-Squared. The breakdown of a fund's holdings in each of the major industry classifications. A measurement of the amount of ownership in a corporation.
Higher values are desirable and indicate greater return per unit of risk.
Money-market securities, which have stable asset values, have standard deviations of zero. Volatile, aggressive-growth portfolios can have standard deviations of 6 percent or more. Analysis Style analysis is becoming an increasingly popular buzzword in the securities industry. More and more professionals continue to embrace this new discipline as an important new way to further understand and properly recommend mutual funds, variable annuities, and closed-end funds to their clients. If Japan stocks rise in value for example, it only makes sense that funds which invest in Japan stocks will experience a similar increase.