Amcap Fund Correlations

CAFFX Fund

USD 40.87 0.07 0.17%

The current 90-days correlation between Amcap Fund Class and Legg Mason Partners is 0.85 (i.e., Very poor diversification). The correlation of Amcap Fund 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.

Amcap Fund Correlation With Market

Poor diversification

The correlation between Amcap Fund Class and DJI is 0.73 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Amcap Fund Class 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 Amcap Fund Class. 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 census.

Moving together with Amcap Mutual Fund

0.62	AMFCX	American Mutual	Pair Corr
0.9	CDJAX	American Funds College	Pair Corr
0.85	RNPAX	New Perspective	Pair Corr
0.85	NPFCX	New Perspective	Pair Corr
0.85	NPFFX	New Perspective	Pair Corr
0.88	DITFX	American Funds 2050	Pair Corr
0.84	ANWPX	New Perspective	Pair Corr
0.82	CWMAX	Washington Mutual	Pair Corr
0.87	FATTX	American Funds 2045	Pair Corr
0.88	GFAFX	Growth Fund	Pair Corr
0.95	SCWFX	Smallcap World	Pair Corr
0.82	FBAFX	American Funds American	Pair Corr
0.9	FBJTX	American Funds 2055	Pair Corr
0.62	FCETX	American Funds 2030	Pair Corr
0.9	FCJTX	American Funds 2055	Pair Corr
0.91	FCKTX	American Funds 2060	Pair Corr
1.0	RAFBX	Amcap Fund Class	Pair Corr
0.95	RSEBX	Smallcap World	Pair Corr

Moving against Amcap Mutual Fund

0.59	RPPFX	American Funds Prese	Pair Corr
0.58	FPPPX	American Funds Prese	Pair Corr
0.46	CFAEX	Bond Fund	Pair Corr
0.35	FAADX	American Funds College	Pair Corr
0.52	CGTFX	Us Government Securities	Pair Corr
0.51	CGTCX	Us Government Securities	Pair Corr

Related Correlations Analysis

	QLMGTX	AUERX	TFAGX	CDGCX	CIPMX	LONAX	MXCAX
QLMGTX		0.6	0.92	0.4	0.76	0.93	0.65	QLMGTX
AUERX	0.6		0.51	0.28	0.75	0.7	0.7	AUERX
TFAGX	0.92	0.51		0.45	0.66	0.84	0.69	TFAGX
CDGCX	0.4	0.28	0.45		0.55	0.5	0.53	CDGCX
CIPMX	0.76	0.75	0.66	0.55		0.88	0.82	CIPMX
LONAX	0.93	0.7	0.84	0.5	0.88		0.69	LONAX
MXCAX	0.65	0.7	0.69	0.53	0.82	0.69		MXCAX
	QLMGTX	AUERX	TFAGX	CDGCX	CIPMX	LONAX	MXCAX

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Risk-Adjusted Indicators

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

	Mean Deviation	Jensen Alpha	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
QLMGTX	1.16	(0.06)	(0.13)	1.69	(3.12)	5.95
AUERX	1.15	(0.33)	(0.50)	1.57	(2.36)	19.53
TFAGX	1.00	(0.13)	0.63	1.61	(2.74)	5.37
CDGCX	0.66	(0.04)	(0.13)	1.12	(1.61)	7.00
CIPMX	0.92	(0.20)	(0.32)	1.33	(1.89)	10.60
LONAX	0.57	(0.06)	(0.17)	1.06	(1.42)	3.16
MXCAX	0.86	(0.13)	0.78	1.67	(2.37)	5.78

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