Permanent Portfolio Correlations

PRPFX Fund  USD 64.45  0.04  0.06%   
The current 90-days correlation between Permanent Portfolio Class and The Fairholme Fund is 0.34 (i.e., Weak diversification). The correlation of Permanent Portfolio 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.

Permanent Portfolio Correlation With Market

Weak diversification

The correlation between Permanent Portfolio Class and DJI is 0.37 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Permanent Portfolio Class 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 Permanent Portfolio Class. 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 census.

Moving together with Permanent Mutual Fund

  1.0PRPHX Permanent Portfolio ClassPairCorr
  1.0PRPDX Permanent Portfolio ClassPairCorr
  0.65PRVBX Versatile Bond PortfolioPairCorr
  0.68PRVHX Versatile Bond PortfolioPairCorr
  0.66PRVDX Versatile Bond PortfolioPairCorr
  0.89PAGDX Aggressive GrowthPairCorr
  0.88PAGHX Aggressive GrowthPairCorr
  0.89PAGRX Aggressive GrowthPairCorr
  0.62FBONX American Funds AmericanPairCorr
  0.62FBAFX American Funds AmericanPairCorr
  0.62ABALX American BalancedPairCorr
  0.61BALFX American BalancedPairCorr
  0.61RLBCX American BalancedPairCorr
  0.61CLBAX American BalancedPairCorr
  0.61CLBEX American BalancedPairCorr
  0.62RLBFX American BalancedPairCorr
  0.72NHS Neuberger Berman HighPairCorr
  0.64SHYPX American Beacon SimPairCorr
  0.62VFINX Vanguard 500 IndexPairCorr
  0.81DFIEX International E EquityPairCorr
  0.61SPXUX Wisdomtree Digital TrustPairCorr
  0.75TLHIX Tiaa Cref LifecyclePairCorr
  0.77TCIEX Tiaa Cref InternationalPairCorr
  0.66TENWX Tiaa Cref EmergingPairCorr
  0.71CWVIX Calvert InternationalPairCorr
  0.79BRIEX Blackrock RetirementPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Permanent Mutual Fund performing well and Permanent Portfolio 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 Permanent Portfolio'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.