Floating Rate Correlations

JFIRX Fund  USD 7.61  0.00  0.00%   
The current 90-days correlation between Floating Rate Income and Principal Fds Money is 0.57 (i.e., Very weak diversification). The correlation of Floating Rate 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.

Floating Rate Correlation With Market

Significant diversification

The correlation between Floating Rate Income 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 Floating Rate Income and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Floating Rate Income. 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 metropolitan statistical area.

Moving together with Floating Mutual Fund

  0.89FRBAX Regional BankPairCorr
  0.89FRBCX Regional BankPairCorr
  0.97JQLMX Multimanager LifestylePairCorr
  0.97JQLBX Multimanager LifestylePairCorr
  0.98JQLAX Multimanager LifestylePairCorr
  0.95JQLCX Multimanager LifestylePairCorr
  0.98JQLGX Multimanager LifestylePairCorr
  0.88JRBFX Regional BankPairCorr
  0.98JRETX J Hancock IiPairCorr
  0.88JRGRX Regional BankPairCorr
  0.95JRLDX Retirement Living ThroughPairCorr
  0.95JRLFX Multi Index 2010PairCorr
  0.96JRLIX Retirement Living ThroughPairCorr
  0.95JRLHX Retirement Living ThroughPairCorr
  0.96JRLKX Multi Index 2015PairCorr
  0.96JRLLX Retirement Living ThroughPairCorr
  0.96JRLOX Retirement Living ThroughPairCorr
  0.98JRLQX Retirement Living ThroughPairCorr
  0.96JRLPX Multi Index 2020PairCorr
  0.98JRLUX Multi Index 2045PairCorr
  0.98JRLWX Retirement Living ThroughPairCorr
  0.98JRLVX Retirement Living ThroughPairCorr
  0.98JRLZX Retirement Living ThroughPairCorr
  0.98JROUX J Hancock IiPairCorr
  0.98JRODX J Hancock IiPairCorr
  0.98JAAFX Jhancock Multi IndexPairCorr
  0.98JAAJX Jhancock Multi IndexPairCorr
  0.98JAAIX Alternative AssetPairCorr
  0.98JAAKX Jhancock Multi IndexPairCorr
  0.98JAAPX Alternative AssetPairCorr
  0.97JRTBX Retirement Living ThroughPairCorr
  0.96JRTAX Retirement Living ThroughPairCorr
  0.98JAARX Alternative AssetPairCorr
  0.97JRTDX Multi Index 2025PairCorr
  0.97JRTGX Retirement Living ThroughPairCorr
  0.97JRTFX Retirement Living ThroughPairCorr
  0.98JAASX Alternative AssetPairCorr
  0.97JRTIX Multi Index 2030PairCorr
  0.98JAAVX Jhancock MultimanagerPairCorr
  0.97JRTKX Retirement Living ThroughPairCorr

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   
FMVUXSTSEX
GMBXXPCSXX
STSEXPCSXX
FMVUXPCSXX
GMBXXSTSEX
GMBXXFMVUX
  
High negative correlations   
GMBXXMPIXX
MPIXXFMVUX
MPIXXSTSEX
MPIXXPCSXX

Risk-Adjusted Indicators

There is a big difference between Floating Mutual Fund performing well and Floating Rate 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 Floating Rate'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.