Real Estate Correlations

AREDX Fund  USD 26.33  0.34  1.27%   
The current 90-days correlation between Real Estate Fund and Fidelity Real Estate is 0.99 (i.e., No risk reduction). The correlation of Real Estate 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.

Real Estate Correlation With Market

Significant diversification

The correlation between Real Estate Fund and DJI is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Real Estate Fund and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Real Estate 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 unemployment.

Moving together with Real Mutual Fund

  0.77VGSIX Vanguard Reit IndexPairCorr
  0.77VGSLX Vanguard Reit IndexPairCorr
  0.77VGSNX Vanguard Reit IndexPairCorr
  0.75DFREX Dfa Real EstatePairCorr
  0.95CSCIX Cohen Steers RealPairCorr
  0.95CSEIX Cohen Steers RealPairCorr
  0.95CSDIX Cohen Steers RealPairCorr
  0.98VRTPX Vanguard Reit IiPairCorr
  0.96CSRIX Cohen And SteersPairCorr
  0.72PIREX Real Estate SecuritiesPairCorr
  0.8FSMMX Fs Multi StrategyPairCorr
  0.63BTMPX Ishares Msci EafePairCorr
  0.63BTMKX Blackrock InternationalPairCorr
  0.63MDIIX Blackrock Intern IndexPairCorr
  0.67T ATT Inc Earnings Call TomorrowPairCorr
  0.81CSCO Cisco SystemsPairCorr
  0.68IBM International BusinessPairCorr
  0.68GE GE AerospacePairCorr
  0.7DD Dupont De NemoursPairCorr

Moving against Real Mutual Fund

  0.71MRK Merck CompanyPairCorr
  0.35AA Alcoa CorpPairCorr

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   
KMKYXKMKNX
FSENXFANIX
FRLAXFRESX
FARCXFRLAX
FARCXFRESX
FANIXKMKNX
  
High negative correlations   
INDIXFRESX
INDIXFRLAX
FARCXINDIX
INDIXKMKYX
INDIXKMKNX
FSENXFRESX

Risk-Adjusted Indicators

There is a big difference between Real Mutual Fund performing well and Real Estate 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 Real Estate'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.