Equity Income Correlations

JHEIX Fund  USD 19.45  0.04  0.21%   
The current 90-days correlation between Equity Income and Nationwide Highmark Short is 0.15 (i.e., Average diversification). The correlation of Equity Income 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.

Equity Income Correlation With Market

EquityDowDiversified AwayEquityDowDiversified Away100%

Very poor diversification

The correlation between Equity Income 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 Equity Income 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 Equity Income 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 gross domestic product.

Moving together with Equity Mutual Fund

  0.87VVIAX Vanguard Value IndexPairCorr
  0.86DOXGX Dodge Cox StockPairCorr
  0.89AFMFX American MutualPairCorr
  0.82FFMMX American Funds AmericanPairCorr
  0.89FFFMX American Funds AmericanPairCorr
  0.89AMRMX American MutualPairCorr
  0.76AMFFX American MutualPairCorr
  0.76AMFCX American MutualPairCorr
  0.99DODGX Dodge Stock FundPairCorr
  0.87VIVAX Vanguard Value IndexPairCorr
  0.61NHS Neuberger Berman HighPairCorr
  0.7GE GE AerospacePairCorr
  0.61IBM International BusinessPairCorr
  0.66WMT WalmartPairCorr
  0.62CSCO Cisco SystemsPairCorr

Moving against Equity Mutual Fund

  0.58MRK Merck CompanyPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Equity Mutual Fund performing well and Equity Income 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 Equity Income'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.