Inflation-protected Correlations

Mutual Funds . USA . 
Fund . Inflation Protected Bond Fund
IPBCX Fund  USD 10.34  0.06  0.58%   
The current 90-days correlation between Inflation Protected and American Funds Inflation is 0.21 (i.e., Modest 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 0.8 (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 main economic indicators.

Moving together with Inflation-protected Mutual Fund

  0.87WABIX Wells Fargo AdvantagePairCorr
  0.78WSCGX Small Pany GrowthPairCorr
  0.71WSCOX Wells Fargo AdvantagePairCorr
  0.86WARDX Wells Fargo AdvantagePairCorr
  0.81WARCX Wells Fargo AdvantagePairCorr
  0.77STAFX Wells Fargo LargePairCorr
  0.77WSMCX Small Pany GrowthPairCorr
  0.78STOFX Wells Fargo LargePairCorr
  0.77STNFX Wells Fargo LargePairCorr
  0.66STSAX Wells Fargo MonPairCorr
  0.66SCNSX Wells Fargo MonPairCorr
  0.66SCSDX Wells Fargo MonPairCorr
  0.66SCSAX Wells Fargo MonPairCorr
  0.67SCVAX Small Pany ValuePairCorr
  0.67SCVIX Small Pany ValuePairCorr
  0.67SCVFX Small Pany ValuePairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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.

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY