Schwab Short-term Correlations

SWSBX Fund  USD 9.59  0.02  0.21%   
The current 90-days correlation between Schwab Short Term and Putnam Global Financials is 0.06 (i.e., Significant diversification). The correlation of Schwab Short-term 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 Short-term Correlation With Market

SchwabDowDiversified AwaySchwabDowDiversified Away100%

Average diversification

The correlation between Schwab Short Term Bond and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Schwab Short Term Bond 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 Short Term Bond. 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

  0.69SWDRX Schwab Target 2030PairCorr
  0.79SWISX Schwab InternationalPairCorr
  0.78SWMIX Laudus InternationalPairCorr
  0.62SWPPX Schwab Sp 500PairCorr
  0.72SWRSX Schwab Treasury InflationPairCorr

Moving against Schwab Mutual Fund

  0.39SWCGX Schwab MarkettrackPairCorr
  0.39SWBGX Schwab MarkettrackPairCorr
  0.39SWHGX Schwab Markettrack GrowthPairCorr
  0.33SWCRX Schwab Target 2020PairCorr

Related Correlations Analysis

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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   
MSVIXFIDAX
VFAIXDVFYX
DVFYXPGFMX
VFAIXPGFMX
ICFAXFIDAX
FIDAXPGFMX
  
High negative correlations   
FTIXXMSVIX
FTIXXVFAIX
FTIXXICFAX
FTIXXFIDAX
FTIXXDVFYX
FTIXXPGFMX

Risk-Adjusted Indicators

There is a big difference between Schwab Mutual Fund performing well and Schwab Short-term 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 Short-term'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.