Equity Income Correlations

PEIIX Fund  USD 45.33  0.04  0.09%   
The current 90-days correlation between Equity Income and Issachar Fund Class is 0.13 (i.e., Average 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
  0.94SACAX Strategic Asset ManaPairCorr
  0.97SAGPX Strategic Asset ManaPairCorr
  0.92PGBGX Blue Chip FundPairCorr
  0.92PGBHX Blue Chip FundPairCorr
  0.97PGRTX Smallcap GrowthPairCorr
  0.96PGWIX Midcap GrowthPairCorr
  0.94SCBPX Strategic Asset ManaPairCorr
  0.72SCIPX Strategic Asset ManaPairCorr
  0.84PHJJX Principal Lifetime HybridPairCorr
  0.91PHTYX Principal Lifetime HybridPairCorr
  0.71PHYTX High Yield FundPairCorr
  0.94PJARX Smallcap ValuePairCorr
  0.68PLFJX Principal Lifetime 2020PairCorr
  0.94PLFPX Largecap Sp 500PairCorr
  0.94PLGJX Largecap GrowthPairCorr
  0.93PLJCX Principal Lifetime 2065PairCorr
  0.61PLJDX Principal Lifetime 2065PairCorr
  0.88PLKTX Principal Lifetime HybridPairCorr
  0.89PLMTX Principal Lifetime HybridPairCorr
  0.91PLNTX Principal Lifetime HybridPairCorr
  0.97PLSAX Largecap Sp 500PairCorr
  0.93PLTCX Principal Lifetime 2060PairCorr
  0.94PLTOX Principal Lifetime 2060PairCorr
  0.81PLTJX Principal Lifetime 2030PairCorr

Moving against Equity Mutual Fund

  0.59PGRVX Global Real EstatePairCorr
  0.54PGRKX Global Real EstatePairCorr
  0.52PGRUX Global Real EstatePairCorr
  0.33PGDIX Global Diversified IncomePairCorr
  0.55PINTX Overseas Fund RPairCorr
  0.54PIPJX Inflation ProtectionPairCorr
  0.53PIPIX Inflation ProtectionPairCorr
  0.44PINRX Diversified InternationalPairCorr

Related Correlations Analysis

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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.