Government Bond Correlations

Mutual Funds . USA . 
Fund . Government Bond Fund
CPTNX Fund  USD 9.27  0.01  0.11%   
The current 90-days correlation between Government Bond and Inflation Adjusted Bond Fund is 0.82 (i.e., Very poor diversification). The correlation of Government Bond 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.

Government Bond Correlation With Market

Significant diversification

The correlation between Government Bond Fund and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Government Bond Fund 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 Government Bond Fund. 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 board of governors.

Moving together with Government Mutual Fund

  0.98CDBCX Diversified BondPairCorr
  0.88TWACX Short Term GovernmentPairCorr
  0.84TWARX Short Term GovernmentPairCorr
  0.85TWAVX Short Term GovernmentPairCorr
  0.76TWGAX International GrowthPairCorr
  0.75TWIEX International GrowthPairCorr
  0.83TWTCX Intermediate Term TaxPairCorr
  0.72TWTIX Intermediate Term TaxPairCorr
  0.77TWUSX Short Term GovernmentPairCorr
  0.79TWUOX Short Term GovernmentPairCorr
  0.78TWWOX Intermediate Term TaxPairCorr

Moving against Government Mutual Fund

  0.8TWCCX Ultra Fund CPairCorr
  0.8TWCUX Ultra Fund InvestorPairCorr
  0.78TWHIX Heritage Fund InvestorPairCorr
  0.77AMEIX Equity GrowthPairCorr
  0.77TWCIX Select Fund InvestorPairCorr
  0.74TWCGX Growth Fund InvestorPairCorr
  0.73TWCAX Select Fund APairCorr
  0.71TWGIX Growth Fund IPairCorr
  0.7AMGIX Income GrowthPairCorr
  0.7TWRCX Growth Fund CPairCorr
  0.68TWADX Value Fund APairCorr
  0.5AMDVX Mid Cap ValuePairCorr
  0.5AMVYX Mid Cap ValuePairCorr
  0.49AMVGX Mid Cap ValuePairCorr
  0.49TWEAX Equity IncomePairCorr
  0.49TWEIX Equity IncomePairCorr
  0.47AMVRX Mid Cap ValuePairCorr
  0.77TWSIX Select Fund IPairCorr
  0.77TWUAX Ultra Fund APairCorr
  0.77TWUIX Ultra Fund IPairCorr
  0.68TWVLX Value Fund InvestorPairCorr
  0.65ANONX Small Cap GrowthPairCorr
  0.65ANOGX Small Cap GrowthPairCorr
  0.65ANOIX Small Cap GrowthPairCorr
  0.65ANOHX American Century SmallPairCorr
  0.65ANODX Small Cap GrowthPairCorr
  0.65ANOYX Small Cap GrowthPairCorr

Related Correlations Analysis

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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   
ADFIX
+ 0.99
BGNMX
ADFIX
+ 0.94
ACITX
BGNMX
+ 0.92
ACITX
TWUSX
+ 0.84
ACITX
ADFIX
+ 0.8
TWUSX
TWUSX
+ 0.75
BGNMX
  
High negative correlations   
TWBIX
- 0.29
BGNMX
TWBIX
- 0.24
ADFIX

Risk-Adjusted Indicators

There is a big difference between Government Mutual Fund performing well and Government Bond 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 Government Bond'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.

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