Blackrock Lifepath Correlations

LPSDX Fund  USD 13.80  0.11  0.80%   
The current 90-days correlation between Blackrock Lifepath and Blackrock California Municipal is 0.34 (i.e., Weak diversification). The correlation of Blackrock Lifepath 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.

Blackrock Lifepath Correlation With Market

BlackrockDowDiversified AwayBlackrockDowDiversified Away100%

Very weak diversification

The correlation between Blackrock Lifepath Dynamic and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Lifepath Dynamic and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Blackrock Lifepath Dynamic. 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 Blackrock Mutual Fund

  0.71MKCMX Blackrock CaliforniaPairCorr
  0.96MKCPX Blackrock BalancedPairCorr
  0.84MKECX Blackrock FundsPairCorr
  0.7MKDCX Blackrock EmergingPairCorr
  0.76MKDVX Blackrock Equity DividendPairCorr
  0.73MKGCX Blackrock AdvantagePairCorr
  0.91BRAPX Blackrock AggressivePairCorr
  0.89BRAMX Bats Series MPairCorr
  0.79MKMTX Blackrock StrategicPairCorr
  0.89BRACX Bats Series CPairCorr
  0.83MKNKX Blackrock New YorkPairCorr
  0.83MKNJX Blackrock New JerseyPairCorr
  0.97MKLOX Blackrock Global AllPairCorr
  0.79BRCPX Blackrock ConservativePairCorr
  0.85MKPYX Blackrock PennsylvaniaPairCorr
  0.65BRGNX Blckrck Fdsiii RssllPairCorr
  0.91BRGPX Blackrock Gwth PreparedPairCorr
  0.65BRGKX Blckrck Fds IiiPairCorr
  0.66BRGAX Blckrck Fdsiii RssllPairCorr
  0.79BRIAX Blackrock RetirementPairCorr
  0.89MKSCX Blackrock FundsPairCorr
  0.86MKSPX Blackrock Advantage TotalPairCorr
  0.78BRIDX Blackrock RetirementPairCorr
  0.77BRIEX Blackrock RetirementPairCorr
  0.78BRICX Blackrock RetirementPairCorr
  0.84BRMIX Blackrock Midcap IndexPairCorr
  0.79MKWIX Blackrock StrategicPairCorr
  0.84BRMAX Blackrock Midcap IndexPairCorr
  0.74BRMPX Blackrock ModeratePairCorr
  0.84BRMKX Blackrock Midcap IndexPairCorr

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   
MKGCXMKDVX
BRAPXMKCPX
MKECXMKCPX
BRAPXMKECX
MKILXMKEFX
MKGCXMKECX
  
High negative correlations   
BRAPXMKEFX
MKECXMKEFX
MKGCXMKEFX
MKFOXMKGCX
MKILXMKGCX
MKDVXMKEFX

Risk-Adjusted Indicators

There is a big difference between Blackrock Mutual Fund performing well and Blackrock Lifepath 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 Blackrock Lifepath'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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
MKCMX  0.13  0.00 (0.01)(0.02) 0.14 
 0.34 
 1.09 
MKCPX  0.38 (0.03) 0.00 (0.10) 0.00 
 0.76 
 3.32 
MKEFX  0.72  0.15  0.15  0.51  0.79 
 1.63 
 4.41 
MKECX  0.74 (0.11) 0.00 (0.17) 0.00 
 1.39 
 4.38 
MKDCX  0.66 (0.03) 0.00 (0.08) 0.00 
 1.47 
 3.87 
MKDVX  0.57 (0.07) 0.00 (0.12) 0.00 
 1.01 
 6.06 
MKGCX  0.73 (0.14) 0.00 (0.25) 0.00 
 0.89 
 12.08 
MKFOX  0.91  0.04  0.03  0.08  1.31 
 1.78 
 6.69 
MKILX  0.64  0.06  0.07  0.14  0.81 
 1.33 
 4.20 
BRAPX  0.56 (0.08) 0.00 (0.26) 0.00 
 0.93 
 6.53