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 0.82 (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

Significant diversification

The correlation between Equity Income Fund and DJI is 0.08 (i.e., Significant 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

  0.94SABPX Strategic Asset ManaPairCorr
  0.97SACAX Strategic Asset ManaPairCorr
  0.94SAGPX Strategic Asset ManaPairCorr
  0.93PGBEX Blue Chip FundPairCorr
  0.76PGBFX Blue Chip FundPairCorr
  0.94PGBGX Blue Chip FundPairCorr
  0.94PGBHX Blue Chip FundPairCorr
  0.91PGLSX Global Multi StrategyPairCorr
  0.93PGRTX Smallcap GrowthPairCorr
  0.9SCBPX Strategic Asset ManaPairCorr
  0.76PHASX Midcap GrowthPairCorr
  0.85PHJEX Principal Lifetime HybridPairCorr
  0.84PHTJX Principal Lifetime HybridPairCorr
  0.87PHTYX Principal Lifetime HybridPairCorr
  0.71PHYTX High Yield FundPairCorr

Moving against Equity Mutual Fund

  0.6PGRVX Global Real EstatePairCorr
  0.57PGRUX Global Real EstatePairCorr
  0.53PFIEX International EquityPairCorr
  0.5PFISX International Small PanyPairCorr
  0.35PGBLX Global Diversified IncomePairCorr
  0.35PGDIX Global Diversified IncomePairCorr
  0.63PIFSX Inflation ProtectionPairCorr
  0.61PINLX Diversified InternationalPairCorr
  0.6PICNX Income Fund RPairCorr
  0.58PGRKX Global Real EstatePairCorr
  0.57PIFPX Inflation ProtectionPairCorr
  0.56PINZX Overseas Fund InstitPairCorr
  0.55PIPJX Inflation ProtectionPairCorr
  0.54PIPIX Inflation ProtectionPairCorr
  0.44PIIIX Diversified InternationalPairCorr

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   
PFIGXPFILX
PFIFXPFIJX
SACAXSABPX
PFISXPFIEX
SAGPXSACAX
SAGPXSABPX
  
High negative correlations   
PFIEXSAGPX
PFIEXSACAX
PFISXSAGPX
PFISXSACAX
PFIEXSABPX
PFISXSABPX

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.