| SWYHX Fund | | | USD 19.29 0.11 0.57% |
The current 90-days correlation between Schwab Target 2045 and Pimco Realpath Blend is 0.05 (i.e., Significant diversification). The correlation of Schwab Target 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 Target Correlation With Market
Poor diversification
The correlation between Schwab Target 2045 and DJI is 0.7 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Schwab Target 2045 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 Target 2045. 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 rate.