Intermediate Term Correlations

AXBIX Fund

USD 10.82 0.04 0.37%

The current 90-days correlation between Intermediate Term Tax and Pace Large Value is -0.28 (i.e., Very good diversification). The correlation of Intermediate Term 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.

Intermediate Term Correlation With Market

Very good diversification

The correlation between Intermediate Term Tax Free Bon and DJI is -0.21 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Term Tax Free Bon 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 Intermediate Term Tax Free Bond. 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 Intermediate Mutual Fund

0.66	CDBCX	Diversified Bond	Pair Corr
0.61	TWAVX	Short Term Government	Pair Corr
0.92	TWTCX	Intermediate Term Tax	Pair Corr
1.0	TWTIX	Intermediate Term Tax	Pair Corr
0.63	TWUSX	Short Term Government	Pair Corr
0.64	TWUOX	Short Term Government	Pair Corr
1.0	TWWOX	Intermediate Term Tax	Pair Corr

Related Correlations Analysis

	PCLVX	ALCEX	LMUSX	GMLVX	DALVX	JDVNX
PCLVX		0.96	0.92	-0.18	0.93	0.95	PCLVX
ALCEX	0.96		0.96	-0.22	0.98	0.99	ALCEX
LMUSX	0.92	0.96		-0.21	0.92	0.95	LMUSX
GMLVX	-0.18	-0.22	-0.21		-0.14	-0.21	GMLVX
DALVX	0.93	0.98	0.92	-0.14		0.98	DALVX
JDVNX	0.95	0.99	0.95	-0.21	0.98		JDVNX
	PCLVX	ALCEX	LMUSX	GMLVX	DALVX	JDVNX

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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

JDVNX	+ 0.99	ALCEX
DALVX	+ 0.98	ALCEX
JDVNX	+ 0.98	DALVX
ALCEX	+ 0.96	PCLVX
LMUSX	+ 0.96	ALCEX
JDVNX	+ 0.95	PCLVX

High negative correlations

GMLVX	- 0.22	ALCEX
JDVNX	- 0.21	GMLVX
GMLVX	- 0.21	LMUSX
GMLVX	- 0.18	PCLVX
DALVX	- 0.14	GMLVX

Risk-Adjusted Indicators

There is a big difference between Intermediate Mutual Fund performing well and Intermediate Term 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 Intermediate Term'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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
PCLVX	0.47	0.01	(0.04)	0.11	0.24	(0.60)	1.01	(0.71)	3.99
ALCEX	0.57	0.13	0.07	1.05	0.34	(0.74)	1.28	(0.84)	5.99
LMUSX	0.54	0.20	0.17	1.69	0.33	(0.69)	1.28	(1.02)	4.08
GMLVX	0.67	0.03	(0.05)	0.22	0.75	(0.76)	1.50	(1.56)	4.86
DALVX	0.45	0.06	(0.07)	0.69	0.29	(0.52)	1.08	(0.64)	3.25
JDVNX	0.54	0.10	0.02	1.11	0.34	(0.69)	1.19	(0.89)	5.12

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