Principal Lifetime Correlations

PPLIX Fund  USD 17.14  0.18  1.06%   
The current 90-days correlation between Principal Lifetime 2050 and Nexpoint Real Estate is -0.07 (i.e., Good diversification). The correlation of Principal Lifetime 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.

Principal Lifetime Correlation With Market

Very weak diversification

The correlation between Principal Lifetime 2050 and DJI is 0.5 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Principal Lifetime 2050 and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Principal Lifetime 2050. 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 Principal Mutual Fund

  0.99SABPX Strategic Asset ManaPairCorr
  0.99SACAX Strategic Asset ManaPairCorr
  0.99SAGPX Strategic Asset ManaPairCorr
  0.62PFIJX Strategic Asset ManaPairCorr
  0.63PFIFX Strategic Asset ManaPairCorr
  0.66PFIPX Strategic Asset ManaPairCorr
  0.92SAIPX Strategic Asset ManaPairCorr
  1.0PFLJX Principal Lifetime 2050PairCorr
  0.62PFPPX Midcap GrowthPairCorr
  0.66PFRSX Real Estate SecuritiesPairCorr
  0.65SAUPX Strategic Asset ManaPairCorr
  0.82PGBEX Blue Chip FundPairCorr
  0.82PGBGX Blue Chip FundPairCorr
  0.82PGBHX Blue Chip FundPairCorr
  0.66PGDRX Diversified Real AssetPairCorr
  0.8PGRTX Smallcap GrowthPairCorr
  0.7PGRUX Global Real EstatePairCorr
  0.66PGSLX Principal Global SusPairCorr
  0.71PGRKX Global Real EstatePairCorr
  0.61PGWIX Midcap GrowthPairCorr
  0.99SCBPX Strategic Asset ManaPairCorr
  0.94SCIPX Strategic Asset ManaPairCorr
  0.98SCGPX Strategic Asset ManaPairCorr
  0.9PHJEX Principal Lifetime HybridPairCorr
  0.72PHJFX Principal Lifetime HybridPairCorr
  0.9PHJGX Principal Lifetime HybridPairCorr
  0.9PHJBX Principal Lifetime HybridPairCorr
  0.89PHJDX Principal Lifetime HybridPairCorr
  0.87PHJNX Principal Lifetime HybridPairCorr
  0.86PHJQX Principal Lifetime HybridPairCorr

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   
TIRRXTRREX
FREAXTRREX
TIRRXFREAX
SWASXMRASX
SWASXBKRDX
BKRDXMRASX
  
High negative correlations   
FREAXFORFX

Risk-Adjusted Indicators

There is a big difference between Principal Mutual Fund performing well and Principal Lifetime 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 Principal Lifetime'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.