Equity Income Correlations

PEIIX Fund  USD 45.33  0.04  0.09%   
The current 90-days correlation between Equity Income and Calamos Dynamic Convertible is 0.28 (i.e., Modest 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 0.89 (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

  0.91SABPX Strategic Asset ManaPairCorr
  0.97SACAX Strategic Asset ManaPairCorr
  0.92PLHHX Principal Lifetime HybridPairCorr
  0.95PMDDX Small Midcap DividendPairCorr
  0.97PCGJX Strategic Asset ManaPairCorr
  0.95VVIAX Vanguard Value IndexPairCorr
  0.94DOXGX Dodge Cox StockPairCorr
  0.78AFMFX American MutualPairCorr
  0.71FFMMX American Funds AmericanPairCorr
  0.71FFFMX American Funds AmericanPairCorr
  0.78AMRMX American MutualPairCorr
  0.87AMFFX American MutualPairCorr
  0.87AMFCX American MutualPairCorr
  0.82DODGX Dodge Stock FundPairCorr
  0.83VIVAX Vanguard Value IndexPairCorr
  0.79VTSAX Vanguard Total StockPairCorr
  0.68VFIAX Vanguard 500 IndexPairCorr
  0.79VTSMX Vanguard Total StockPairCorr
  0.79VSMPX Vanguard Total StockPairCorr
  0.79VSTSX Vanguard Total StockPairCorr
  0.68VITSX Vanguard Total StockPairCorr
  0.68VFINX Vanguard 500 IndexPairCorr
  0.97VFFSX Vanguard 500 IndexPairCorr
  0.74HPQ HP IncPairCorr
  0.9BAC Bank of America Fiscal Year End 10th of January 2025 PairCorr
  0.94CSCO Cisco Systems Aggressive PushPairCorr
  0.87DIS Walt DisneyPairCorr
  0.91CVX Chevron Corp Fiscal Year End 7th of February 2025 PairCorr
  0.81CAT Caterpillar Fiscal Year End 3rd of February 2025 PairCorr
  0.87WMT Walmart Aggressive PushPairCorr
  0.82T ATT Inc Aggressive PushPairCorr

Moving against Equity Mutual Fund

  0.75JNJ Johnson Johnson Fiscal Year End 28th of January 2025 PairCorr
  0.72PFE Pfizer Inc Fiscal Year End 4th of February 2025 PairCorr
  0.72KO Coca Cola Fiscal Year End 11th of February 2025 PairCorr
  0.47BA Boeing Fiscal Year End 29th of January 2025 PairCorr
  0.34VGTSX Vanguard Total InterPairCorr
  0.34VTIAX Vanguard Total InterPairCorr

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   
PRCCXLCFYX
LCFYXAVK
PRCCXPBXIX
PRCCXAVK
LCFYXPBXIX
PBXIXAVK
  
High negative correlations   
AVKCCD
LCFYXCCD
PRCCXCCD

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.