Municipal Bond Correlations

WMFDX Fund  USD 9.39  0.02  0.21%   
The current 90-days correlation between Municipal Bond and John Hancock Financial is -0.14 (i.e., Good diversification). The correlation of Municipal 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.

Municipal Bond Correlation With Market

Good diversification

The correlation between Municipal Bond Fund and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Municipal Bond Fund and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Municipal 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 unemployment.

Moving together with Municipal Mutual Fund

  0.73SSTHX Wells Fargo ShortPairCorr
  0.67WSIDX Wells Fargo StrategicPairCorr
  0.67WSMCX Small Pany GrowthPairCorr
  0.66STOFX Wells Fargo LargePairCorr
  0.71STYIX Wells Fargo ShortPairCorr

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   
PSSRXBTO
PGFMXIAAEX
PSSRXFIDAX
FIDAXIAAEX
FIDAXBTO
PGFMXFIDAX
  
High negative correlations   
PGFMXXFINX
XFINXIAAEX
FIDAXXFINX
PSSRXXFINX
XFINXBTO
FTIXXXFINX

Risk-Adjusted Indicators

There is a big difference between Municipal Mutual Fund performing well and Municipal 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 Municipal 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.