Inflation-protected Correlations

Mutual Funds . USA . 
Fund . Inflation Protected Bond Fund
IPBCX Fund  USD 10.00  0.01  0.1%   
The current 90-days correlation between Inflation Protected and Scharf Global Opportunity is 0.01 (i.e., Significant diversification). The correlation of Inflation-protected 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.

Inflation-protected Correlation With Market

Poor diversification

The correlation between Inflation Protected Bond Fund and DJI is 0.62 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Inflation Protected Bond Fund and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Inflation Protected Bond 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 main economic indicators.

Moving together with Inflation-protected Mutual Fund

  0.66DHICX Wells Fargo AdvantagePairCorr
  0.63VMPYX Wells Fargo AdvantagePairCorr
  0.64VMPAX Wells Fargo AdvantagePairCorr
  0.82WABIX Wells Fargo AdvantagePairCorr
  0.63SSTHX Wells Fargo ShortPairCorr
  0.83WARAX Wells Fargo AdvantagePairCorr
  0.7WARDX Wells Fargo AdvantagePairCorr
  0.84WARCX Wells Fargo AdvantagePairCorr
  0.62WSIAX Wells Fargo StrategicPairCorr
  0.62WSIDX Wells Fargo StrategicPairCorr
  0.64WSICX Wells Fargo StrategicPairCorr
  0.61WSSCX Short Term MunicipalPairCorr
  0.65STRIX Wells Fargo AdvantagePairCorr
  0.61STYIX Wells Fargo ShortPairCorr
  0.66SCTAX California Tax FreePairCorr
  0.65SCTCX California Tax FreePairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Inflation-protected Mutual Fund performing well and Inflation-protected 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 Inflation-protected'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.

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