Target Managed Correlations

UTMAX Fund  USD 11.08  0.05  0.45%   
The current 90-days correlation between Target Managed Allocation and Global Diversified Income is 0.38 (i.e., Weak diversification). The correlation of Target Managed 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.

Target Managed Correlation With Market

Very weak diversification

The correlation between Target Managed Allocation and DJI is 0.53 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Target Managed Allocation 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 Target Managed Allocation. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as various price indices.

Moving together with Target Mutual Fund

  0.68PAALX All Asset FundPairCorr
  0.66PATRX Pimco All AssetPairCorr
  0.69PAAIX All Asset FundPairCorr
  0.69PALPX Pimco All AssetPairCorr
  0.67PASAX All Asset FundPairCorr
  0.64PASCX All Asset FundPairCorr
  0.68PAANX Pimco All AssetPairCorr
  0.61PAUPX Pimco All AssetPairCorr
  0.62PAUIX Pimco All AssetPairCorr
  0.66ABRIX Invesco Balanced RiskPairCorr

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   
SWSSXDSCPX
PDAAXPGBAX
LIGFXPGBAX
XACVXPGBAX
LIGFXHAIDX
SWSSXLIGFX
  
High negative correlations   
SWSSXJDJRX
JDJRXDSCPX
JDJRXHAIDX
JDJRXLIGFX

Risk-Adjusted Indicators

There is a big difference between Target Mutual Fund performing well and Target Managed 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 Target Managed'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.