Schwab Health Correlations

SWHFX Fund

USD 24.98 0.09 0.36%

The current 90-days correlation between Schwab Health Care and Blackrock Health Sciences is 0.57 (i.e., Very weak diversification). The correlation of Schwab Health 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.

Schwab Health Correlation With Market

Poor diversification

The correlation between Schwab Health Care and DJI is 0.61 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Schwab Health Care and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Schwab Health Care. 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 Schwab Mutual Fund

0.72	SWCAX	Schwab California Tax	Pair Corr
0.78	SWAGX	Schwab Aggregate Bond	Pair Corr
0.75	SWASX	Schwab Global Real	Pair Corr
0.77	SWDSX	Schwab Dividend Equity	Pair Corr
0.61	SWHYX	Schwab Opportunistic	Pair Corr
0.83	SWISX	Schwab International	Pair Corr
0.87	SWKRX	Schwab Monthly Income	Pair Corr
0.87	SWJRX	Schwab Monthly Income	Pair Corr
0.84	SWMIX	Laudus International	Pair Corr
0.86	SWLRX	Schwab Monthly Income	Pair Corr
0.75	SWNTX	Schwab Tax Free	Pair Corr
0.83	SWRSX	Schwab Treasury Inflation	Pair Corr
0.73	SWSBX	Schwab Short Term	Pair Corr

Moving against Schwab Mutual Fund

0.32

SWLGX

Schwab Large Cap

Pair Corr

Related Correlations Analysis

	BHSRX	FHCCX	HHCZX	LYFAX	LYFCX	PGHAX	LHCCX	FIKCX	HIAHX
BHSRX		-0.26	0.42	0.97	0.97	0.8	0.37	-0.09	0.89	BHSRX
FHCCX	-0.26		0.19	-0.22	-0.2	-0.01	0.44	0.98	-0.01	FHCCX
HHCZX	0.42	0.19		0.31	0.32	0.02	0.85	0.38	0.72	HHCZX
LYFAX	0.97	-0.22	0.31		1.0	0.86	0.29	-0.07	0.85	LYFAX
LYFCX	0.97	-0.2	0.32	1.0		0.86	0.31	-0.05	0.86	LYFCX
PGHAX	0.8	-0.01	0.02	0.86	0.86		0.11	0.06	0.59	PGHAX
LHCCX	0.37	0.44	0.85	0.29	0.31	0.11		0.61	0.71	LHCCX
FIKCX	-0.09	0.98	0.38	-0.07	-0.05	0.06	0.61		0.2	FIKCX
HIAHX	0.89	-0.01	0.72	0.85	0.86	0.59	0.71	0.2		HIAHX
	BHSRX	FHCCX	HHCZX	LYFAX	LYFCX	PGHAX	LHCCX	FIKCX	HIAHX

Click cells to compare fundamentals

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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

LYFCX	+ 1.0	LYFAX
FIKCX	+ 0.98	FHCCX
LYFAX	+ 0.97	BHSRX
LYFCX	+ 0.97	BHSRX
HIAHX	+ 0.89	BHSRX
PGHAX	+ 0.86	LYFAX

High negative correlations

FHCCX	- 0.26	BHSRX
LYFAX	- 0.22	FHCCX
LYFCX	- 0.2	FHCCX
FIKCX	- 0.09	BHSRX
FIKCX	- 0.07	LYFAX
FIKCX	- 0.05	LYFCX

Risk-Adjusted Indicators

There is a big difference between Schwab Mutual Fund performing well and Schwab Health 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 Schwab Health'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
BHSRX	0.63	0.06	0.12	0.04	0.72	(0.70)	1.32	(0.96)	3.74
FHCCX	0.99	(0.20)	0.00	(0.36)	0.00	0.00	1.46	(1.98)	15.50
HHCZX	0.17	(0.01)	0.00	(0.14)	0.00	0.00	0.31	(0.36)	0.98
LYFAX	0.61	0.05	0.11	0.03	0.71	(0.63)	1.22	(1.18)	3.27
LYFCX	0.59	0.04	0.10	0.02	0.71	(0.61)	1.17	(1.20)	3.17
PGHAX	0.65	0.02	0.00	(0.03)	0.00	0.00	1.33	(1.10)	4.12
LHCCX	0.92	(0.05)	0.00	(0.13)	0.00	0.00	1.61	(1.97)	6.65
FIKCX	0.91	(0.12)	0.00	(0.23)	0.00	0.00	1.46	(1.99)	10.39
HIAHX	0.68	0.03	0.00	(0.03)	0.00	0.00	1.39	(1.22)	4.43

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