Us Government Correlations
| RGVFX Fund | USD 11.62 0.02 0.17% |
The correlation of Us Government 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 perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Us Government moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Us Government Securities moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Weak diversification
The correlation between Us Government Securities and NYA is 0.38 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Us Government Securities and NYA in the same portfolio, assuming nothing else is changed.
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The ability to find closely correlated positions to Us Government could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Us Government when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Us Government - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Us Government Securities to buy it.
Moving together with RGVFX Mutual Fund
| 0.9 | FPPPX | American Funds Prese | PairCorr |
| 1.0 | AMUSX | Us Government Securities | PairCorr |
| 1.0 | CGTCX | Us Government Securities | PairCorr |
| 1.0 | CGTAX | Us Government Securities | PairCorr |
Related Correlations Analysis
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Our tools can tell you how much better you can do entering a position in Us Government without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Already Invested in Us Government Securities?
The danger of trading Us Government Securities is mainly related to its market volatility and Mutual Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Us Government is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Us Government. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Us Government Securities is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Us Government Securities. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in census. Note that the Us Government Securities information on this page should be used as a complementary analysis to other Us Government's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.