Short Term Correlations

RMMGX Fund

USD 9.59 0.01 0.10%

The current 90-days correlation between Short Term Bond and Western Asset E is 0.72 (i.e., Poor diversification). The correlation of Short Term 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.

Short Term Correlation With Market

Significant diversification

The correlation between Short Term Bond Fund and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Short Term Bond Fund 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 Short Term 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 price.

Moving together with Short Mutual Fund

0.7	AMECX	Income Fund	Pair Corr
0.98	FPPPX	American Funds Prese	Pair Corr
0.76	AMEFX	Income Fund	Pair Corr
0.8	AMHIX	American High Income	Pair Corr
0.69	TEAFX	Tax Exempt Bond	Pair Corr
0.66	TECFX	Tax Exempt Fund	Pair Corr
0.69	TEFEX	Tax Exempt Fund	Pair Corr
0.73	RNRPX	American Funds Retirement	Pair Corr
0.95	AMUSX	Us Government Securities	Pair Corr
0.88	TEPCX	American Funds Tax	Pair Corr
0.9	TEPAX	American Funds Tax	Pair Corr
0.9	TEPFX	American Funds Tax	Pair Corr

Moving against Short Mutual Fund

0.52	RNGBX	New Economy Fund	Pair Corr
0.52	RNGAX	New Economy Fund	Pair Corr
0.51	RNGGX	New Economy Fund	Pair Corr
0.51	RNGFX	New Economy Fund	Pair Corr
0.51	RNGHX	New Economy Fund	Pair Corr
0.51	RNGEX	New Economy Fund	Pair Corr
0.51	RNGCX	New Economy Fund	Pair Corr
0.6	AMPCX	Amcap Fund Class	Pair Corr
0.59	AMPFX	Amcap Fund Class	Pair Corr
0.52	RNNEX	New Economy Fund	Pair Corr

Related Correlations Analysis

	WACIX	UIITX	MSTBX	TAADX	RULFX	DLTNX
WACIX		0.99	0.96	0.99	0.86	0.98	WACIX
UIITX	0.99		0.97	1.0	0.85	0.99	UIITX
MSTBX	0.96	0.97		0.96	0.92	0.98	MSTBX
TAADX	0.99	1.0	0.96		0.84	0.99	TAADX
RULFX	0.86	0.85	0.92	0.84		0.85	RULFX
DLTNX	0.98	0.99	0.98	0.99	0.85		DLTNX
	WACIX	UIITX	MSTBX	TAADX	RULFX	DLTNX

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Risk-Adjusted Indicators

There is a big difference between Short Mutual Fund performing well and Short Term 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 Short Term'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 Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
WACIX	0.25	0.02	0.28	0.29	0.21	(0.30)	0.55	(0.44)	1.56
UIITX	0.23	0.02	0.29	0.56	0.18	(0.28)	0.55	(0.43)	1.45
MSTBX	0.11	0.02	0.51	3.47	0.00	(0.15)	0.21	(0.21)	0.62
TAADX	0.22	0.02	0.27	0.33	0.18	(0.28)	0.50	(0.38)	1.27
RULFX	0.05	0.01	0.00	2.78	0.00	0.00	0.10	(0.10)	0.60
DLTNX	0.22	0.03	0.32	0.78	0.13	(0.31)	0.57	(0.34)	1.40

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