Principal Lifetime Correlations

PHJYX Fund  USD 16.50  0.03  0.18%   
The current 90-days correlation between Principal Lifetime Hybrid and Great West Goldman Sachs is 0.5 (i.e., Very weak diversification). The correlation of Principal Lifetime 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.

Principal Lifetime Correlation With Market

Very weak diversification

The correlation between Principal Lifetime Hybrid and DJI is 0.53 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Principal Lifetime Hybrid 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 Principal Lifetime Hybrid. 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 manufacturing.

Moving together with Principal Mutual Fund

  0.67PFIJX Strategic Asset ManaPairCorr
  0.64PFIFX Strategic Asset ManaPairCorr
  0.64PFIPX Strategic Asset ManaPairCorr
  0.63SAIPX Strategic Asset ManaPairCorr
  0.67SAUPX Strategic Asset ManaPairCorr
  0.72PGBAX Global Diversified IncomePairCorr
  0.72PGBLX Global Diversified IncomePairCorr
  0.72PGDCX Global Diversified IncomePairCorr
  0.72PGDIX Global Diversified IncomePairCorr
  0.64PGLSX Global Multi StrategyPairCorr
  0.66STCCX Short Term IncomePairCorr
  0.88PGWIX Midcap GrowthPairCorr
  0.61SCIPX Strategic Asset ManaPairCorr
  0.61PHJFX Principal Lifetime HybridPairCorr
  0.61PHJNX Principal Lifetime HybridPairCorr

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   
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SGDLXGLDAX
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High negative correlations   
VGSBXSGDLX

Risk-Adjusted Indicators

There is a big difference between Principal Mutual Fund performing well and Principal Lifetime 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 Principal Lifetime'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.