Equity Income Correlations

JHEIX Fund  USD 19.58  0.11  0.56%   
The current 90-days correlation between Equity Income and Touchstone Large Cap is 0.35 (i.e., Weak 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

Weak diversification

The correlation between Equity Income Fund and DJI is 0.35 (i.e., Weak 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

  0.95FRBAX Regional BankPairCorr
  0.97FRBCX Regional BankPairCorr
  0.63JQLBX Multimanager LifestylePairCorr
  0.78JQLAX Multimanager LifestylePairCorr
  0.72JQLGX Multimanager LifestylePairCorr
  0.97JRBFX Regional BankPairCorr
  0.73JRETX J Hancock IiPairCorr
  0.97JRGRX Regional BankPairCorr
  0.61JRLOX Retirement Living ThroughPairCorr
  0.61JRLPX Multi Index 2020PairCorr
  0.73JROUX J Hancock IiPairCorr
  0.78JAAFX Jhancock Multi IndexPairCorr
  0.78JAAJX Jhancock Multi IndexPairCorr
  0.78JAAKX Jhancock Multi IndexPairCorr
  0.62JRTBX Retirement Living ThroughPairCorr
  0.63JRTDX Multi Index 2025PairCorr
  0.61JRTGX Retirement Living ThroughPairCorr
  0.62JRTFX Retirement Living ThroughPairCorr
  0.63JRTIX Multi Index 2030PairCorr
  0.76JAAVX Jhancock MultimanagerPairCorr
  0.61JRTKX Retirement Living ThroughPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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   
PAFDXPAVLX
PAVLXTACLX
PAFDXTACLX
LTFOXTACLX
PAFDXALCEX
ALCEXTACLX
  
High negative correlations   
CMIFXPAFDX
CMIFXPAVLX
CMIFXOLGCX
CMIFXALCEX

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.