Money Market Correlations

PCVXX Fund   1.00  0.00  0.00%   
The current 90-days correlation between Money Market Obligations and Vanguard Total Stock is -0.19 (i.e., Good diversification). The correlation of Money Market 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.

Money Market Correlation With Market

Good diversification

The correlation between Money Market Obligations and DJI is -0.09 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Money Market Obligations 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 Money Market Obligations. Also, note that the market value of any money market fund could be closely tied with the direction of predictive economic indicators such as signals in interest.

Moving together with Money Money Market Fund

  0.71VTSAX Vanguard Total StockPairCorr
  0.74VFIAX Vanguard 500 IndexPairCorr
  0.71VTSMX Vanguard Total StockPairCorr
  0.72VITSX Vanguard Total StockPairCorr
  0.71VSTSX Vanguard Total StockPairCorr
  0.71VSMPX Vanguard Total StockPairCorr
  0.74VFINX Vanguard 500 IndexPairCorr
  0.73VFFSX Vanguard 500 IndexPairCorr
  0.8XOM Exxon Mobil Corp Fiscal Year End 7th of February 2025 PairCorr
  0.82AA Alcoa Corp Sell-off TrendPairCorr
  0.62JPM JPMorgan Chase Fiscal Year End 10th of January 2025 PairCorr
  0.68AXP American Express Fiscal Year End 24th of January 2025 PairCorr
  0.8CSCO Cisco SystemsPairCorr
  0.71HPQ HP IncPairCorr
  0.73HD Home DepotPairCorr
  0.64INTC Intel Fiscal Year End 23rd of January 2025 PairCorr

Moving against Money Money Market Fund

  0.83PFHCX Pacific Funds SmallPairCorr
  0.79MRK Merck Company Fiscal Year End 6th of February 2025 PairCorr
  0.63JNJ Johnson Johnson Fiscal Year End 28th of January 2025 PairCorr
  0.5PFE Pfizer Inc Potential GrowthPairCorr

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   
VTSMXVTSAX
VSTSXVTSAX
VSMPXVTSAX
VFFSXVTSAX
VITSXVFIAX
VFINXVFIAX
  
High negative correlations   
VTIAXVITSX
VGTSXVITSX
VTIAXVSMPX
VGTSXVSMPX
VTIAXVSTSX
VGTSXVSTSX

Risk-Adjusted Indicators

There is a big difference between Money Money Market Fund performing well and Money Market Money Market 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 Money Market'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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
VTSAX  0.53  0.04  0.03  0.19  0.49 
 1.10 
 4.11 
VFIAX  0.53  0.10 (0.04) 5.02  0.65 
 1.17 
 3.84 
VTSMX  0.52  0.04  0.03  0.18  0.49 
 1.10 
 4.11 
VITSX  0.56  0.11 (0.03) 2.76  0.66 
 1.10 
 4.11 
VSTSX  0.53  0.04  0.03  0.19  0.49 
 1.10 
 4.11 
VSMPX  0.53  0.04  0.03  0.19  0.49 
 1.10 
 4.11 
VFINX  0.53  0.10 (0.04) 4.93  0.65 
 1.17 
 3.84 
VFFSX  0.51  0.04  0.01  0.18  0.49 
 1.17 
 3.84 
VGTSX  0.60 (0.06)(0.18)(0.01) 0.74 
 1.15 
 4.09 
VTIAX  0.60 (0.06)(0.18)(0.01) 0.74 
 1.15 
 4.11