Money Market Correlations

PCVXX Fund   1.00  0.00  0.00%   
The current 90-days correlation between Money Market Obligations and Small Cap Stock is 0.02 (i.e., Significant 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

  0.68VTSAX Vanguard Total StockPairCorr
  0.72VFIAX Vanguard 500 IndexPairCorr
  0.68VTSMX Vanguard Total StockPairCorr
  0.7VITSX Vanguard Total StockPairCorr
  0.68VSTSX Vanguard Total StockPairCorr
  0.68VSMPX Vanguard Total StockPairCorr
  0.72VFINX Vanguard 500 IndexPairCorr
  0.7VFFSX Vanguard 500 IndexPairCorr
  0.7FTCAX Templeton Strained BondPairCorr
  0.79PYAIX Payden Absolute ReturnPairCorr
  0.77PYARX Payden Absolute ReturnPairCorr
  0.76BCAAX Brandywineglobal CPairCorr
  0.66AXP American Express Fiscal Year End 24th of January 2025 PairCorr
  0.79CSCO Cisco Systems Sell-off TrendPairCorr
  0.75CAT Caterpillar Fiscal Year End 3rd of February 2025 PairCorr
  0.63JPM JPMorgan Chase Fiscal Year End 10th of January 2025 PairCorr
  0.7HD Home DepotPairCorr
  0.63BAC Bank of America Fiscal Year End 10th of January 2025 PairCorr
  0.74CVX Chevron Corp Fiscal Year End 7th of February 2025 PairCorr

Moving against Money Money Market Fund

  0.69USPSX Profunds UltrashortPairCorr
  0.69USPIX Profunds UltrashortPairCorr
  0.62UIPIX Ultrashort Mid CapPairCorr
  0.66KO Coca Cola Fiscal Year End 11th of February 2025 PairCorr
  0.52PFE Pfizer Inc Fiscal Year End 4th of February 2025 PairCorr
  0.47BA Boeing Fiscal Year End 29th of January 2025 PairCorr
  0.34PG Procter GamblePairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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   
GSQTXPASVX
RTOUXUSCAX
PASVXRTOUX
GSQTXRTOUX
PASVXUSCAX
GSQTXUSCAX
  
High negative correlations   
GSQTXHNIDX
PASVXHNIDX
ADXHNIDX
RTOUXHNIDX
GSQTXJDJRX
PASVXJDJRX

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.