Capital Income Correlations

CAIBX Fund

USD 73.11 0.17 0.23%

The current 90-days correlation between Capital Income Builder and Income Fund Of is 0.48 (i.e., Very weak diversification). The correlation of Capital Income 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.

Capital Income Correlation With Market

Poor diversification

The correlation between Capital Income Builder and DJI is 0.61 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder 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 Capital Income Builder. 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 bureau of labor statistics.

Moving together with Capital Mutual Fund

0.62	RNEBX	New World Fund	Pair Corr
0.75	RNCCX	American Funds Income	Pair Corr
0.68	RNRPX	American Funds Retirement	Pair Corr
0.71	RNWFX	New World Fund	Pair Corr

Related Correlations Analysis

	AMECX	REJTX	RNEBX	AMFCX	RNCCX	FPPPX	REITX	AMEFX	RNGGX
AMECX		0.36	0.02	0.68	0.58	-0.13	0.48	1.0	0.39	AMECX
REJTX	0.36		0.46	0.48	0.83	0.64	0.57	0.36	0.29	REJTX
RNEBX	0.02	0.46		-0.05	0.27	0.42	0.04	0.01	-0.16	RNEBX
AMFCX	0.68	0.48	-0.05		0.56	-0.3	0.8	0.68	0.73	AMFCX
RNCCX	0.58	0.83	0.27	0.56		0.42	0.58	0.58	0.36	RNCCX
FPPPX	-0.13	0.64	0.42	-0.3	0.42		-0.19	-0.14	-0.45	FPPPX
REITX	0.48	0.57	0.04	0.8	0.58	-0.19		0.48	0.94	REITX
AMEFX	1.0	0.36	0.01	0.68	0.58	-0.14	0.48		0.4	AMEFX
RNGGX	0.39	0.29	-0.16	0.73	0.36	-0.45	0.94	0.4		RNGGX
	AMECX	REJTX	RNEBX	AMFCX	RNCCX	FPPPX	REITX	AMEFX	RNGGX

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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

AMEFX	+ 1.0	AMECX
RNGGX	+ 0.94	REITX
RNCCX	+ 0.83	REJTX
REITX	+ 0.8	AMFCX
RNGGX	+ 0.73	AMFCX
AMFCX	+ 0.68	AMECX

High negative correlations

RNGGX	- 0.45	FPPPX
FPPPX	- 0.3	AMFCX
REITX	- 0.19	FPPPX
RNGGX	- 0.16	RNEBX
AMEFX	- 0.14	FPPPX
FPPPX	- 0.13	AMECX

Risk-Adjusted Indicators

There is a big difference between Capital Mutual Fund performing well and Capital Income 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 Capital Income'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	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
AMECX	0.35	(0.08)	0.00	(0.11)	0.00	0.00	0.66	(0.54)	1.81
REJTX	0.21	0.00	(0.23)	0.05	0.24	(0.23)	0.46	(0.46)	1.22
RNEBX	0.50	0.02	(0.09)	(0.70)	0.64	(0.50)	1.04	(0.99)	3.78
AMFCX	0.42	0.02	(0.12)	0.29	0.36	(0.53)	0.84	(0.68)	2.68
RNCCX	0.23	(0.02)	(0.24)	0.02	0.24	(0.25)	0.52	(0.51)	1.32
FPPPX	0.11	(0.02)	0.00	(0.59)	0.00	0.00	0.21	(0.21)	0.74
REITX	0.42	0.07	(0.01)	1.26	0.46	(0.43)	0.78	(0.81)	2.87
AMEFX	0.36	(0.08)	0.00	(0.11)	0.00	0.00	0.66	(0.50)	1.81
RNGGX	0.60	0.12	0.05	1.39	0.68	(0.65)	1.38	(1.17)	4.00

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