Risk Profile: Aggressive Growth
The Scotia Partners Dynamic Momentum Program ("Scotia Dynamic") is a long-only, momentum based strategy that utilizes the Rydex-SGI sector funds. The strategy analyzes momentum and volatility to determine which sectors present the best investment opportunities. Scotia Dynamic will only allocate capital to those funds with positive price momentum and will overweight positions that exhibit both strong momentum and low volatility.
Portfolio Diversification and Correlation Analysis: When diversifying your portfolio, it is important to understand how each strategy correlates to your other positions. We believe the key to long-term success is how you weave a number of low-correlating strategies into your portfolio and manage those allocations over time.
For an explanation on strategy correlation and comparisons to other indices, click on the Correlation Matrix link on the right. A 1.00 correlation would be a perfect correlation. A 0.000 correlation reading would imply a non-correlation. Generally, readings below 0.50 reflect a low-correlation.
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