American Funds Correlations

CCKTX Fund

USD 17.37 0.02 0.12%

The current 90-days correlation between American Funds 2060 and Income Fund Of is 0.71 (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

Poor diversification

The correlation between American Funds 2060 and DJI is 0.65 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds 2060 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 2060. 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

0.71	AMFCX	American Mutual	Pair Corr
0.71	AMFFX	American Mutual	Pair Corr
0.89	RNGBX	New Economy Fund	Pair Corr
0.93	RNPAX	New Perspective	Pair Corr
0.93	RNPGX	New Perspective	Pair Corr
0.92	ANCFX	American Funds Funda	Pair Corr
0.91	ANEFX	New Economy Fund	Pair Corr
0.91	ANFFX	New Economy Fund	Pair Corr
0.93	NPFFX	New Perspective	Pair Corr
0.98	PGGFX	American Funds Global	Pair Corr
0.93	ANWPX	New Perspective	Pair Corr
0.88	BALFX	American Balanced	Pair Corr
0.81	CWGIX	Capital World Growth	Pair Corr
0.81	CWGFX	Capital World Growth	Pair Corr
0.81	CWGCX	Capital World Growth	Pair Corr
0.91	WSHFX	Washington Mutual	Pair Corr
0.81	CWICX	Capital World Growth	Pair Corr
0.81	CWIAX	Capital World Growth	Pair Corr
1.0	FAITX	American Funds 2050	Pair Corr
0.92	CFNFX	American Funds Funda	Pair Corr
0.92	CFNEX	American Funds Funda	Pair Corr

Moving against American Mutual Fund

0.4	FPPPX	American Funds Prese	Pair Corr
0.35	AMUSX	Us Government Securities	Pair Corr
0.42	CFAMX	Short Term Bond	Pair Corr
0.39	RPPGX	American Funds Prese	Pair Corr
0.35	FSUUX	American Funds Government	Pair Corr

Related Correlations Analysis

	AMECX	REJTX	RNEBX	AMFCX	RNCCX	FPPPX	REITX	AMEFX	RNGGX
AMECX		0.79	0.73	0.82	0.93	0.71	0.38	0.99	0.16	AMECX
REJTX	0.79		0.85	0.76	0.93	0.51	0.58	0.78	0.29	REJTX
RNEBX	0.73	0.85		0.73	0.83	0.37	0.61	0.73	0.43	RNEBX
AMFCX	0.82	0.76	0.73		0.84	0.25	0.77	0.76	0.67	AMFCX
RNCCX	0.93	0.93	0.83	0.84		0.62	0.54	0.92	0.25	RNCCX
FPPPX	0.71	0.51	0.37	0.25	0.62		-0.3	0.77	-0.51	FPPPX
REITX	0.38	0.58	0.61	0.77	0.54	-0.3		0.3	0.89	REITX
AMEFX	0.99	0.78	0.73	0.76	0.92	0.77	0.3		0.07	AMEFX
RNGGX	0.16	0.29	0.43	0.67	0.25	-0.51	0.89	0.07		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	+ 0.99	AMECX
RNCCX	+ 0.93	AMECX
RNCCX	+ 0.93	REJTX
AMEFX	+ 0.92	RNCCX
RNGGX	+ 0.89	REITX
RNEBX	+ 0.85	REJTX

High negative correlations

RNGGX	- 0.51	FPPPX
REITX	- 0.3	FPPPX

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
AMECX	0.48	0.02	0.00	(0.03)	0.00	0.00	0.83	(1.10)	2.61
REJTX	0.33	0.00	0.00	(0.08)	0.00	0.00	0.56	(0.63)	2.45
RNEBX	0.68	(0.01)	0.00	(0.09)	0.00	0.00	1.23	(1.65)	5.22
AMFCX	0.63	(0.03)	0.00	(0.10)	0.00	0.00	1.09	(1.46)	4.75
RNCCX	0.35	0.01	0.10	(0.03)	0.52	(0.37)	0.67	(0.74)	2.10
FPPPX	0.11	0.02	0.44	1.14	0.00	(0.16)	0.32	(0.21)	0.64
REITX	0.70	(0.03)	0.00	(0.12)	0.00	0.00	1.26	(1.54)	3.82
AMEFX	0.48	0.03	0.08	(0.01)	0.74	(0.46)	0.87	(1.10)	2.29
RNGGX	1.13	(0.13)	0.00	(0.17)	0.00	0.00	1.60	(2.86)	10.17

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