Foreign Bond Correlations

PFRCX Fund  USD 7.83  0.02  0.25%   
The current 90-days correlation between Foreign Bond and Pimco Unconstrained Bond is 0.42 (i.e., Very weak diversification). The correlation of Foreign Bond 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.

Foreign Bond Correlation With Market

Good diversification

The correlation between Foreign Bond Fund and DJI is -0.19 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Foreign 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 Foreign 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 main economic indicators.

Moving together with Foreign Mutual Fund

  0.83PFBPX Pimco Foreign BondPairCorr
  0.72PFCJX Pimco Preferred AndPairCorr
  0.71PFANX Pimco Capital SecPairCorr
  0.8PFIAX Pimco Floating IncomePairCorr
  0.82PFIIX Pimco Floating IncomePairCorr
  0.84PFIUX Pimco Unconstrained BondPairCorr
  0.73PFINX Pimco Capital SecPairCorr
  0.82PFNCX Pimco Floating IncomePairCorr
  0.89PFONX Pimco International BondPairCorr
  0.89PFORX Pimco Foreign BondPairCorr
  0.74PFNNX Pimco Preferred AndPairCorr
  0.77PFNIX Pimco Low DurationPairCorr
  0.84PFNUX Pimco Dynamic BondPairCorr
  0.85PFOAX Pimco Foreign BondPairCorr
  0.84PFOCX Pimco Foreign BondPairCorr
  0.9PFRAX Pimco Foreign BondPairCorr
  0.74PFRMX Pimco Inflation ResponsePairCorr
  0.73PFPNX Pimco Capital SecPairCorr
  0.68PFTCX Short Term FundPairCorr
  0.77PFTPX Pimco Floating IncomePairCorr
  0.84PFRRX Pimco Foreign BondPairCorr
  0.79PFSIX Pimco Emerging MarketsPairCorr
  0.93PFUUX Pimco Foreign BondPairCorr
  1.0PFUAX Foreign BondPairCorr
  0.93PFUIX Foreign BondPairCorr
  0.93PFUNX Pimco International BondPairCorr
  0.93PFUPX Pimco Foreign BondPairCorr
  0.67PGAPX Pimco Global MultiPairCorr
  0.65PXTIX Fundamental IndexplusPairCorr
  0.64PXTNX Pimco Rae PlusPairCorr
  0.86PGBIX Global Bond FundPairCorr

Moving against Foreign Mutual Fund

  0.69PWLBX Pimco Rae WorldwidePairCorr
  0.39PWLEX Pimco Rae WorldwidePairCorr
  0.32PWLMX Pimco Rae WorldwidePairCorr
  0.31PWLIX Pimco Rae WorldwidePairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Foreign Mutual Fund performing well and Foreign Bond 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 Foreign Bond'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.