Tax-exempt Bond Correlations

RTECX Fund

USD 21.96 0.01 0.05%

The current 90-days correlation between Tax Exempt Bond and Vanguard Intermediate Term Tax Exempt is 0.91 (i.e., Almost no diversification). The correlation of Tax-exempt 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.

Tax-exempt Bond Correlation With Market

Average diversification

The correlation between Tax Exempt Bond Fund and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Tax Exempt Bond Fund and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Tax Exempt 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 Tax-exempt Mutual Fund

0.71	RREAX	Global Real Estate	Pair Corr
0.71	RREYX	Global Real Estate	Pair Corr
0.71	RRESX	Global Real Estate	Pair Corr
0.71	RRSCX	Global Real Estate	Pair Corr
0.73	RRSRX	Global Real Estate	Pair Corr
0.7	RSBRX	Strategic Bond	Pair Corr
0.75	RSBTX	Short Duration Bond	Pair Corr
0.73	RSBYX	Short Duration Bond	Pair Corr
0.76	RSBCX	Short Duration Bond	Pair Corr
0.78	RSDTX	Short Duration Bond	Pair Corr
0.99	RBCUX	Tax Exempt Bond	Pair Corr
0.7	RSYTX	Strategic Bond	Pair Corr
0.99	RTEAX	Tax Exempt Bond	Pair Corr

Moving against Tax-exempt Mutual Fund

0.34	RSCRX	Us Small Cap	Pair Corr
0.33	RSEAX	Us Strategic Equity	Pair Corr
0.33	RSESX	Us Strategic Equity	Pair Corr
0.32	RSECX	Us Strategic Equity	Pair Corr
0.33	RTDAX	Multifactor Equity	Pair Corr
0.33	RTDYX	Select Equity	Pair Corr
0.33	RTDSX	Select Equity	Pair Corr
0.33	RTDRX	Select Equity	Pair Corr
0.33	RTDTX	Select Equity	Pair Corr
0.32	RTDCX	Multifactor Equity	Pair Corr
0.31	RTLCX	Tax Managed Large	Pair Corr

Related Correlations Analysis

	VWITX	VWIUX	AFTEX	AFTFX	TEBCX	TEAFX	TFEBX	FLTMX	MDNLX	MFNLX
VWITX		1.0	0.91	0.91	1.0	0.91	0.9	0.99	0.91	0.91	VWITX
VWIUX	1.0		0.92	0.92	1.0	0.91	0.91	0.99	0.91	0.91	VWIUX
AFTEX	0.91	0.92		1.0	0.91	1.0	1.0	0.9	0.98	0.97	AFTEX
AFTFX	0.91	0.92	1.0		0.91	1.0	1.0	0.9	0.98	0.97	AFTFX
TEBCX	1.0	1.0	0.91	0.91		0.91	0.9	0.99	0.9	0.9	TEBCX
TEAFX	0.91	0.91	1.0	1.0	0.91		1.0	0.9	0.98	0.96	TEAFX
TFEBX	0.9	0.91	1.0	1.0	0.9	1.0		0.89	0.98	0.97	TFEBX
FLTMX	0.99	0.99	0.9	0.9	0.99	0.9	0.89		0.9	0.9	FLTMX
MDNLX	0.91	0.91	0.98	0.98	0.9	0.98	0.98	0.9		0.99	MDNLX
MFNLX	0.91	0.91	0.97	0.97	0.9	0.96	0.97	0.9	0.99		MFNLX
	VWITX	VWIUX	AFTEX	AFTFX	TEBCX	TEAFX	TFEBX	FLTMX	MDNLX	MFNLX

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Risk-Adjusted Indicators

There is a big difference between Tax-exempt Mutual Fund performing well and Tax-exempt 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 Tax-exempt 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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
VWITX	0.11	(0.01)	(0.38)	(0.16)	0.17	(0.16)	0.22	(0.22)	1.03
VWIUX	0.12	(0.01)	(0.37)	(0.13)	0.17	(0.16)	0.29	(0.29)	1.10
AFTEX	0.13	0.01	(0.30)	0.04	0.21	(0.18)	0.32	(0.32)	1.29
AFTFX	0.13	0.01	(0.30)	0.04	0.21	(0.18)	0.32	(0.32)	1.29
TEBCX	0.13	(0.01)	(0.29)	(0.10)	0.21	(0.17)	0.32	(0.32)	1.29
TEAFX	0.13	0.01	(0.29)	0.03	0.20	(0.18)	0.32	(0.32)	1.29
TFEBX	0.13	0.01	(0.30)	0.03	0.20	(0.18)	0.32	(0.32)	1.29
FLTMX	0.11	(0.01)	(0.36)	(0.15)	0.17	(0.18)	0.29	(0.29)	1.09
MDNLX	0.13	0.00	(0.35)	0.05	0.17	(0.19)	0.30	(0.29)	1.09
MFNLX	0.12	0.00	(0.35)	0.08	0.17	(0.19)	0.30	(0.29)	1.09

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