Municipal Bond Correlations

TMUUX Fund

USD 8.54 0.02 0.23%

The current 90-days correlation between Municipal Bond and Enhanced Fixed Income is 0.61 (i.e., Poor diversification). The correlation of Municipal 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.

Municipal Bond Correlation With Market

Average diversification

The correlation between Municipal Bond Fund and DJI is 0.17 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Municipal Bond 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 Municipal 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 employment.

Moving together with Municipal Mutual Fund

0.67	MLMAX	Global E Portfolio	Pair Corr
0.67	MLMCX	Global E Portfolio	Pair Corr
0.66	MLNSX	Global Centrated Por	Pair Corr
0.68	MLMIX	Global E Portfolio	Pair Corr
0.66	MLMSX	Global E Portfolio	Pair Corr
0.73	MLNCX	Global Centrated Por	Pair Corr
0.72	MLNAX	Global Centrated Por	Pair Corr
0.66	MLNIX	Global Centrated Por	Pair Corr
0.67	MNOPX	International Opportunity	Pair Corr
0.89	TIIUX	Core Fixed Income	Pair Corr
0.79	TILUX	Inflation Linked Fixed	Pair Corr
0.77	MPBAX	Global Strategist	Pair Corr
0.9	MPFDX	Corporate Bond Portfolio	Pair Corr
0.67	MRNPX	Msif International	Pair Corr

Related Correlations Analysis

	AAEZX	TRWIX	XJCEX	PASTX	QMNNX	HCEGX	GMADX
AAEZX		0.84	0.9	0.55	-0.13	0.86	0.73	AAEZX
TRWIX	0.84		0.81	0.37	-0.25	0.76	0.82	TRWIX
XJCEX	0.9	0.81		0.7	-0.18	0.93	0.74	XJCEX
PASTX	0.55	0.37	0.7		-0.19	0.7	0.31	PASTX
QMNNX	-0.13	-0.25	-0.18	-0.19		-0.04	-0.17	QMNNX
HCEGX	0.86	0.76	0.93	0.7	-0.04		0.75	HCEGX
GMADX	0.73	0.82	0.74	0.31	-0.17	0.75		GMADX
	AAEZX	TRWIX	XJCEX	PASTX	QMNNX	HCEGX	GMADX

Click cells to compare fundamentals

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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

HCEGX	+ 0.93	XJCEX
XJCEX	+ 0.9	AAEZX
HCEGX	+ 0.86	AAEZX
TRWIX	+ 0.84	AAEZX
GMADX	+ 0.82	TRWIX
XJCEX	+ 0.81	TRWIX

High negative correlations

QMNNX	- 0.25	TRWIX
QMNNX	- 0.19	PASTX
QMNNX	- 0.18	XJCEX
GMADX	- 0.17	QMNNX
QMNNX	- 0.13	AAEZX
HCEGX	- 0.04	QMNNX

Risk-Adjusted Indicators

There is a big difference between Municipal Mutual Fund performing well and Municipal 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 Municipal 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
AAEZX	0.23	0.00	(0.14)	0.08	0.27	(0.28)	0.61	(0.50)	1.90
TRWIX	0.63	0.03	(0.02)	0.22	0.86	(0.68)	1.68	(1.76)	5.26
XJCEX	0.60	(0.01)	(0.04)	0.06	1.00	(0.55)	1.20	(1.58)	3.77
PASTX	1.32	(0.12)	0.00	(0.09)	0.00	0.00	2.66	(3.89)	9.64
QMNNX	0.35	0.14	0.18	4.92	0.00	(0.47)	0.76	(0.50)	2.31
HCEGX	0.58	(0.02)	(0.06)	0.01	0.85	(0.65)	1.24	(1.57)	3.99
GMADX	0.64	(0.01)	(0.04)	0.05	1.30	(0.66)	1.25	(1.63)	11.02

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