Government High Correlations

CMPGX Fund  USD 8.93  0.03  0.33%   
The current 90-days correlation between Government High Quality and Aam Select Income is 0.88 (i.e., Very poor diversification). The correlation of Government High 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.

Government High Correlation With Market

Significant diversification

The correlation between Government High Quality and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Government High Quality 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 Government High Quality. 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 price.

Moving together with Government Mutual Fund

  0.76PFIJX Strategic Asset ManaPairCorr
  0.82PFIEX International EquityPairCorr
  0.76PFIFX Strategic Asset ManaPairCorr
  0.8PFISX International Small PanyPairCorr
  0.74PFIPX Strategic Asset ManaPairCorr
  0.8PFRSX Real Estate SecuritiesPairCorr
  0.76SAUPX Strategic Asset ManaPairCorr
  0.77PFUMX Finisterre UnconstrainedPairCorr
  0.92PGBAX Global Diversified IncomePairCorr
  0.92PGBLX Global Diversified IncomePairCorr
  0.94PGDCX Global Diversified IncomePairCorr
  0.92PGDIX Global Diversified IncomePairCorr
  0.87STCCX Short Term IncomePairCorr
  0.74PGRUX Global Real EstatePairCorr
  0.69PGSLX Principal Global SusPairCorr
  0.74PGRKX Global Real EstatePairCorr
  0.64PYHIX High Yield FundPairCorr
  0.63PHJFX Principal Lifetime HybridPairCorr

Moving against Government Mutual Fund

  0.51PFPPX Midcap GrowthPairCorr
  0.51PGWIX Midcap GrowthPairCorr
  0.31PGRTX Smallcap GrowthPairCorr
  0.51PHPPX Midcap GrowthPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Government Mutual Fund performing well and Government High 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 Government High'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.