Equity Income Correlations

PEIIX Fund  USD 45.16  0.17  0.38%   
The current 90-days correlation between Equity Income and Strategic Asset Management is 0.81 (i.e., Very poor diversification). The correlation of Equity Income 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.

Equity Income Correlation With Market

Very poor diversification

The correlation between Equity Income Fund and DJI is 0.84 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Equity Income Fund 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 Equity Income 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 gross domestic product.

Moving together with Equity Mutual Fund

  0.93SABPX Strategic Asset ManaPairCorr
  0.97SACAX Strategic Asset ManaPairCorr
  0.96SAGPX Strategic Asset ManaPairCorr
  0.68PGLSX Global Multi StrategyPairCorr
  0.83PGRTX Smallcap GrowthPairCorr
  0.79SCBPX Strategic Asset ManaPairCorr
  0.71PHJEX Principal Lifetime HybridPairCorr
  0.89PHTYX Principal Lifetime HybridPairCorr
  0.68PHYTX High Yield FundPairCorr
  0.75PLCGX Largecap GrowthPairCorr
  0.61PLFJX Principal Lifetime 2020PairCorr
  0.76PLFIX Largecap Sp 500PairCorr
  0.67PLFTX Principal Lifetime HybridPairCorr
  0.75PLHHX Principal Lifetime HybridPairCorr
  0.91PLKTX Principal Lifetime HybridPairCorr
  0.97PLSAX Largecap Sp 500PairCorr

Moving against Equity Mutual Fund

  0.62PGRUX Global Real EstatePairCorr
  0.59PFIEX International EquityPairCorr
  0.55PFISX International Small PanyPairCorr
  0.46PFIGX Strategic Asset ManaPairCorr
  0.42PGBLX Global Diversified IncomePairCorr
  0.41PGDIX Global Diversified IncomePairCorr
  0.62PGRKX Global Real EstatePairCorr
  0.6PINZX Overseas Fund InstitPairCorr
  0.57PICNX Income Fund RPairCorr
  0.55PIPIX Inflation ProtectionPairCorr
  0.53PIFPX Inflation ProtectionPairCorr
  0.51PIIIX Diversified InternationalPairCorr
  0.48PGRVX Global Real EstatePairCorr
  0.39PIFSX Inflation ProtectionPairCorr
  0.35PYHIX High Yield FundPairCorr

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   
SAGPXSACAX
SAGPXSABPX
SACAXSABPX
PFISXPFIEX
PFIGXPFILX
PFIFXPFIJX
  
High negative correlations   
PFIEXSACAX
PFIEXSAGPX
PFISXSACAX
PFISXSAGPX
PFIGXSAGPX
PFIGXSACAX

Risk-Adjusted Indicators

There is a big difference between Equity Mutual Fund performing well and Equity Income 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 Equity Income'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.