Schwab Balanced Correlations

SWOBX Fund

USD 17.78 0.10 0.57%

The current 90-days correlation between Schwab Balanced and Laudus Large Cap is 0.84 (i.e., Very poor diversification). The correlation of Schwab Balanced 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.

Schwab Balanced Correlation With Market

Poor diversification

The correlation between Schwab Balanced Fund and DJI is 0.72 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Schwab Balanced Fund and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Schwab Balanced 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 bureau of labor statistics.

Moving together with SCHWAB Mutual Fund

0.89	LGILX	Laudus Large Cap	Pair Corr
0.62	SWBRX	Schwab Target 2010	Pair Corr
0.92	SWANX	Schwab E Equity	Pair Corr
0.91	SWBGX	Schwab Markettrack	Pair Corr
0.94	SWDRX	Schwab Target 2030	Pair Corr
0.85	SWDSX	Schwab Dividend Equity	Pair Corr
0.87	SWEGX	Schwab Markettrack All	Pair Corr
0.77	SWCRX	Schwab Target 2020	Pair Corr
0.71	SWGRX	Schwab Target 2015	Pair Corr
0.97	SWERX	Schwab Target 2040	Pair Corr
0.98	SWIRX	Schwab Target 2035	Pair Corr
0.98	SWHGX	Schwab Markettrack Growth	Pair Corr
0.75	SWHRX	Schwab Target 2025	Pair Corr
0.85	SWMCX	Schwab Mid Cap	Pair Corr
0.96	SWMRX	Schwab Target 2045	Pair Corr
0.89	SWLGX	Schwab Large Cap	Pair Corr
0.91	SWLSX	Schwab Large Cap	Pair Corr
0.86	SWLVX	Schwab Large Cap	Pair Corr
0.96	SWORX	Schwab Target 2055	Pair Corr
0.96	SWNRX	Schwab Target 2050	Pair Corr
0.96	SWQRX	Schwab Target 2065	Pair Corr
0.96	SWPRX	Schwab Target 2060	Pair Corr
0.84	SWPPX	Schwab Sp 500	Pair Corr
0.83	SWSSX	Schwab Small Cap	Pair Corr
0.82	SWSCX	Schwab Small Cap	Pair Corr

Moving against SCHWAB Mutual Fund

0.43	SWAGX	Schwab Aggregate Bond	Pair Corr
0.51	SWHFX	Schwab Health Care	Pair Corr
0.31	SWSBX	Schwab Short Term	Pair Corr

Related Correlations Analysis

	LGILX	SWBRX	SWCAX	SWCGX	SWANX	SWAGX	SWASX	SWDRX	SWDSX
LGILX		0.26	-0.34	0.09	0.99	-0.76	-0.4	0.75	0.9	LGILX
SWBRX	0.26		0.56	0.88	0.35	0.38	0.71	0.81	0.36	SWBRX
SWCAX	-0.34	0.56		0.61	-0.27	0.72	0.69	0.14	-0.16	SWCAX
SWCGX	0.09	0.88	0.61		0.19	0.45	0.73	0.65	0.2	SWCGX
SWANX	0.99	0.35	-0.27	0.19		-0.71	-0.3	0.81	0.93	SWANX
SWAGX	-0.76	0.38	0.72	0.45	-0.71		0.83	-0.22	-0.64	SWAGX
SWASX	-0.4	0.71	0.69	0.73	-0.3	0.83		0.23	-0.23	SWASX
SWDRX	0.75	0.81	0.14	0.65	0.81	-0.22	0.23		0.78	SWDRX
SWDSX	0.9	0.36	-0.16	0.2	0.93	-0.64	-0.23	0.78		SWDSX
	LGILX	SWBRX	SWCAX	SWCGX	SWANX	SWAGX	SWASX	SWDRX	SWDSX

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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

SWANX	+ 0.99	LGILX
SWDSX	+ 0.93	SWANX
SWDSX	+ 0.9	LGILX
SWCGX	+ 0.88	SWBRX
SWASX	+ 0.83	SWAGX
SWDRX	+ 0.81	SWBRX

High negative correlations

SWAGX	- 0.76	LGILX
SWAGX	- 0.71	SWANX
SWDSX	- 0.64	SWAGX
SWASX	- 0.4	LGILX
SWCAX	- 0.34	LGILX
SWASX	- 0.3	SWANX

Risk-Adjusted Indicators

There is a big difference between SCHWAB Mutual Fund performing well and Schwab Balanced 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 Schwab Balanced'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
LGILX	0.73	(0.02)	(0.02)	0.10	1.12	(0.67)	1.68	(2.22)	5.07
SWBRX	0.21	(0.02)	(0.40)	0.04	0.20	(0.25)	0.51	(0.43)	1.30
SWCAX	0.12	0.01	(0.41)	0.02	0.16	(0.18)	0.27	(0.27)	1.08
SWCGX	0.25	0.00	(0.34)	0.03	0.29	(0.27)	0.55	(0.61)	1.54
SWANX	0.56	(0.01)	(0.04)	0.10	0.73	(0.55)	1.13	(1.69)	3.68
SWAGX	0.22	(0.02)	0.00	0.43	0.00	0.00	0.45	(0.56)	1.35
SWASX	0.56	(0.03)	(0.15)	0.01	0.69	(0.60)	1.02	(1.20)	3.08
SWDRX	0.31	(0.01)	(0.23)	0.07	0.29	(0.39)	0.76	(0.63)	2.10
SWDSX	0.46	0.01	(0.05)	0.14	0.29	(0.58)	0.97	(0.78)	2.65

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