Inflation-protected Correlations

IPBAX Fund

USD 10.56 0.06 0.57%

The current 90-days correlation between Inflation Protected and Wells Fargo Advantage is -0.07 (i.e., Good diversification). The correlation of Inflation-protected 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.

Inflation-protected Correlation With Market

Very poor diversification

The correlation between Inflation Protected Bond Fund and DJI is 0.82 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Inflation Protected Bond Fund and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Inflation Protected 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 nation.

Moving together with Inflation-protected Mutual Fund

0.85	WABIX	Wells Fargo Advantage	Pair Corr
0.79	WSCGX	Small Pany Growth	Pair Corr
0.73	WSCOX	Wells Fargo Advantage	Pair Corr
0.84	WARDX	Wells Fargo Advantage	Pair Corr
0.79	WARCX	Wells Fargo Advantage	Pair Corr
0.8	STAFX	Wells Fargo Large	Pair Corr
0.8	STDFX	Wells Fargo Large	Pair Corr
0.79	WSMCX	Small Pany Growth	Pair Corr
0.8	STOFX	Wells Fargo Large	Pair Corr
0.8	STNFX	Wells Fargo Large	Pair Corr
0.67	STSAX	Wells Fargo Mon	Pair Corr
0.68	SCNSX	Wells Fargo Mon	Pair Corr
0.68	SCSDX	Wells Fargo Mon	Pair Corr
0.63	SCSAX	Wells Fargo Mon	Pair Corr
0.69	SCVAX	Small Pany Value	Pair Corr
0.69	SCVIX	Small Pany Value	Pair Corr

Related Correlations Analysis

	DHICX	VMPYX	VMPAX	SADAX	SADIX	EMGYX	EMGNX	EMGCX	EMGAX	SSHIX
DHICX		0.97	0.98	0.0	-0.02	0.3	0.3	0.31	0.3	0.58	DHICX
VMPYX	0.97		0.98	0.16	0.14	0.29	0.29	0.3	0.29	0.61	VMPYX
VMPAX	0.98	0.98		0.16	0.13	0.28	0.28	0.28	0.28	0.62	VMPAX
SADAX	0.0	0.16	0.16		0.98	0.21	0.22	0.19	0.21	0.19	SADAX
SADIX	-0.02	0.14	0.13	0.98		0.26	0.26	0.24	0.26	0.14	SADIX
EMGYX	0.3	0.29	0.28	0.21	0.26		1.0	1.0	1.0	0.32	EMGYX
EMGNX	0.3	0.29	0.28	0.22	0.26	1.0		1.0	1.0	0.32	EMGNX
EMGCX	0.31	0.3	0.28	0.19	0.24	1.0	1.0		1.0	0.33	EMGCX
EMGAX	0.3	0.29	0.28	0.21	0.26	1.0	1.0	1.0		0.33	EMGAX
SSHIX	0.58	0.61	0.62	0.19	0.14	0.32	0.32	0.33	0.33		SSHIX
	DHICX	VMPYX	VMPAX	SADAX	SADIX	EMGYX	EMGNX	EMGCX	EMGAX	SSHIX

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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

EMGNX	+ 1.0	EMGYX
EMGCX	+ 1.0	EMGYX
EMGAX	+ 1.0	EMGYX
EMGCX	+ 1.0	EMGNX
EMGAX	+ 1.0	EMGNX
EMGAX	+ 1.0	EMGCX

High negative correlations

SADIX	- 0.02	DHICX
SADAX	- 0.0	DHICX

Risk-Adjusted Indicators

There is a big difference between Inflation-protected Mutual Fund performing well and Inflation-protected 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 Inflation-protected'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
DHICX	0.09	0.01	(0.48)	(0.01)	0.08	(0.15)	0.23	(0.22)	0.79
VMPYX	0.09	0.01	(0.50)	(0.08)	0.05	(0.16)	0.23	(0.22)	0.79
VMPAX	0.09	0.01	(0.47)	(0.07)	0.06	(0.15)	0.23	(0.23)	0.79
SADAX	0.06	0.01	(0.97)	1.15	0.00	(0.17)	0.11	(0.11)	0.46
SADIX	0.06	0.01	(0.92)	(2.51)	0.00	(0.18)	0.11	(0.11)	0.57
EMGYX	0.65	(0.05)	(0.13)	(0.02)	0.99	(0.60)	1.28	(1.76)	5.15
EMGNX	0.65	(0.05)	(0.13)	(0.01)	1.00	(0.58)	1.23	(1.75)	5.20
EMGCX	0.65	(0.05)	(0.13)	(0.03)	0.99	(0.59)	1.27	(1.75)	5.16
EMGAX	0.65	(0.05)	(0.13)	(0.02)	0.98	(0.60)	1.28	(1.75)	5.16
SSHIX	0.08	0.00	(0.89)	0.07	0.00	(0.14)	0.23	(0.12)	0.59

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