American Funds Correlations

AFICX Fund

USD 89.49 0.75 0.83%

The current 90-days correlation between American Funds Funda and Payden Government Fund is -0.09 (i.e., Good 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

Significant diversification

The correlation between American Funds Fundamental and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental 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 Fundamental. 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 main economic indicators.

Moving together with American Mutual Fund

0.87	RNGGX	New Economy Fund	Pair Corr
0.87	RNGHX	New Economy Fund	Pair Corr
0.83	RNGAX	New Economy Fund	Pair Corr
0.86	RNNEX	New Economy Fund	Pair Corr
0.95	CDJAX	American Funds College	Pair Corr
0.67	AMPCX	Amcap Fund Class	Pair Corr
0.73	AMPFX	Amcap Fund Class	Pair Corr
0.73	RNPBX	New Perspective	Pair Corr
0.73	RNPAX	New Perspective	Pair Corr
0.87	RNPHX	New Perspective	Pair Corr
0.76	RNPGX	New Perspective	Pair Corr
0.74	RNPCX	New Perspective	Pair Corr
0.76	RNPFX	New Perspective	Pair Corr
0.75	RNPEX	New Perspective	Pair Corr

Moving against American Mutual Fund

0.41	FPPPX	American Funds Prese	Pair Corr
0.31	RNEBX	New World Fund	Pair Corr
0.71	ANBAX	American Funds Strategic	Pair Corr
0.71	ANBCX	American Funds Strategic	Pair Corr
0.7	ANBEX	American Funds Strategic	Pair Corr
0.7	ANBGX	American Funds Strategic	Pair Corr
0.7	ANBFX	American Funds Strategic	Pair Corr
0.65	AMUSX	Us Government Securities	Pair Corr
0.48	CEAMX	Short Term Bond	Pair Corr
0.47	CDWCX	American Funds Developing	Pair Corr
0.46	CDWEX	American Funds Developing	Pair Corr

Related Correlations Analysis

	PYUSX	JGBZX	SNGYX	LCCXX	UGSDX	GVPIX	SWGXX
PYUSX		0.99	0.98	0.0	-0.24	0.97	-0.83	PYUSX
JGBZX	0.99		0.99	0.0	-0.24	0.99	-0.84	JGBZX
SNGYX	0.98	0.99		0.0	-0.17	0.97	-0.82	SNGYX
LCCXX	0.0	0.0	0.0		0.0	0.0	0.0	LCCXX
UGSDX	-0.24	-0.24	-0.17	0.0		-0.22	0.39	UGSDX
GVPIX	0.97	0.99	0.97	0.0	-0.22		-0.82	GVPIX
SWGXX	-0.83	-0.84	-0.82	0.0	0.39	-0.82		SWGXX
	PYUSX	JGBZX	SNGYX	LCCXX	UGSDX	GVPIX	SWGXX

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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

JGBZX	+ 0.99	PYUSX
SNGYX	+ 0.99	JGBZX
GVPIX	+ 0.99	JGBZX
SNGYX	+ 0.98	PYUSX
GVPIX	+ 0.97	PYUSX
GVPIX	+ 0.97	SNGYX

High negative correlations

SWGXX	- 0.84	JGBZX
SWGXX	- 0.83	PYUSX
SWGXX	- 0.82	GVPIX
SWGXX	- 0.82	SNGYX
UGSDX	- 0.24	JGBZX
UGSDX	- 0.24	PYUSX

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	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
PYUSX	0.11	(0.03)	(1.20)	0.21	(0.21)	0.63
JGBZX	0.22	(0.06)	(1.08)	0.32	(0.53)	1.16
SNGYX	0.16	(0.04)	(1.09)	0.29	(0.29)	0.98
LCCXX	0.00	0.00	0.00	0.00	0.00	0.00
UGSDX	0.03	0.00	(0.60)	0.00	0.00	0.52
GVPIX	0.83	(0.21)	(1.51)	1.60	(1.89)	5.15
SWGXX	0.03	0.01	(0.27)	0.00	0.00	1.01

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