### Correlation Tool

Correlation is a statistical measure of the degree to which the returns of two funds tend to move in the same direction. The correlation coefficient ranges from 1.00 (perfect correlation) to -1.00 (perfect inverse correlation). In the table below, correlations are multiplied by 100 for ease of presentation, so perfect correlation is expressed as 100. Perfect correlation between fund "x" and fund "y" means that every time fund "x" moves up, fund "y" would move up as well. And with perfect inverse correlation, every time fund "x" moves up, fund "y" would move down. (Note: correlation does not measure the magnitude of the moves only the direction.)