American Funds Correlations

AAATX Fund

USD 11.92 0.02 0.17%

The current 90-days correlation between American Funds 2010 and Madison Diversified Income is 0.77 (i.e., Poor diversification). The correlation of American Funds 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.

American Funds Correlation With Market

Very weak diversification

The correlation between American Funds 2010 and DJI is 0.54 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds 2010 and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Funds 2010. 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 estimate.

Moving together with American Mutual Fund

0.83	AMECX	Income Fund	Pair Corr
0.84	RNEBX	New World Fund	Pair Corr
0.74	AMFCX	American Mutual	Pair Corr
0.74	AMFFX	American Mutual	Pair Corr
0.95	RNCCX	American Funds Income	Pair Corr
0.83	AMEFX	Income Fund	Pair Corr
0.73	AMHIX	American High Income	Pair Corr
0.69	TEBCX	Tax Exempt Bond	Pair Corr
0.67	TECCX	Tax Exempt Fund	Pair Corr
0.7	TEAFX	Tax Exempt Bond	Pair Corr
0.95	FPTPX	American Funds Conse	Pair Corr
0.67	TECFX	Tax Exempt Fund	Pair Corr
0.67	TEFEX	Tax Exempt Fund	Pair Corr
0.74	AMRMX	American Mutual	Pair Corr
0.74	AMRFX	American Mutual	Pair Corr
0.85	RNRPX	American Funds Retirement	Pair Corr
0.65	AMUSX	Us Government Securities	Pair Corr
0.75	TEPCX	American Funds Tax	Pair Corr
0.75	TEPAX	American Funds Tax	Pair Corr
0.76	TEPFX	American Funds Tax	Pair Corr
0.85	RNWFX	New World Fund	Pair Corr

Related Correlations Analysis

	MBLAX	OIDAX	PGBAX	ACBPX	SRDAX	BDVFX	DIFIX
MBLAX		0.74	0.76	0.61	-0.04	0.58	0.77	MBLAX
OIDAX	0.74		0.75	0.65	-0.24	0.69	0.78	OIDAX
PGBAX	0.76	0.75		0.96	-0.33	0.88	0.98	PGBAX
ACBPX	0.61	0.65	0.96		-0.44	0.94	0.96	ACBPX
SRDAX	-0.04	-0.24	-0.33	-0.44		-0.5	-0.38	SRDAX
BDVFX	0.58	0.69	0.88	0.94	-0.5		0.92	BDVFX
DIFIX	0.77	0.78	0.98	0.96	-0.38	0.92		DIFIX
	MBLAX	OIDAX	PGBAX	ACBPX	SRDAX	BDVFX	DIFIX

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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

DIFIX	+ 0.98	PGBAX
ACBPX	+ 0.96	PGBAX
DIFIX	+ 0.96	ACBPX
BDVFX	+ 0.94	ACBPX
DIFIX	+ 0.92	BDVFX
BDVFX	+ 0.88	PGBAX

High negative correlations

BDVFX	- 0.5	SRDAX
SRDAX	- 0.44	ACBPX
DIFIX	- 0.38	SRDAX
SRDAX	- 0.33	PGBAX
SRDAX	- 0.24	OIDAX
SRDAX	- 0.04	MBLAX

Risk-Adjusted Indicators

There is a big difference between American Mutual Fund performing well and American Funds 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 American Funds' 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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
MBLAX	0.27	0.00	0.00	(0.05)	0.00	0.00	0.62	(0.54)	1.51
OIDAX	0.72	(0.01)	0.00	(0.10)	0.00	0.00	1.42	(1.46)	5.03
PGBAX	0.14	0.01	0.40	0.13	0.07	(0.18)	0.34	(0.25)	0.85
ACBPX	0.24	0.02	0.27	0.34	0.20	(0.30)	0.56	(0.44)	1.23
SRDAX	0.16	0.00	0.27	(2.13)	0.16	(0.20)	0.29	(0.37)	0.76
BDVFX	0.26	(0.01)	0.00	(0.15)	0.00	0.00	0.54	(0.54)	1.41
DIFIX	0.28	0.02	0.16	0.01	0.35	(0.33)	0.58	(0.57)	1.51

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