American Funds Correlations

CGPCX Fund

USD 24.66 1.61 6.13%

The current 90-days correlation between American Funds Growth and Income Fund Of is 0.36 (i.e., Weak 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

Average diversification

The correlation between American Funds Growth and DJI is 0.15 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Growth 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 Growth. 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

0.73	CDJAX	American Funds College	Pair Corr
0.67	AMPCX	Amcap Fund Class	Pair Corr
0.75	AMPFX	Amcap Fund Class	Pair Corr

Moving against American Mutual Fund

0.31	RNEBX	New World Fund	Pair Corr
0.46	CDWEX	American Funds Developing	Pair Corr
0.46	CDWCX	American Funds Developing	Pair Corr
0.45	CDWFX	American Funds Developing	Pair Corr
0.45	CDWAX	American Funds Developing	Pair Corr
0.33	ANBEX	American Funds Strategic	Pair Corr

Related Correlations Analysis

	AMECX	RNEBX	AMFCX	AMFFX	RNCCX	FPPPX	AMEFX	RNGGX	RNGFX	RNGHX
AMECX		0.52	0.9	0.9	0.73	0.15	1.0	0.65	0.78	0.65	AMECX
RNEBX	0.52		0.52	0.5	0.52	0.57	0.52	0.31	0.29	0.31	RNEBX
AMFCX	0.9	0.52		1.0	0.74	0.12	0.9	0.84	0.82	0.84	AMFCX
AMFFX	0.9	0.5	1.0		0.74	0.11	0.9	0.85	0.83	0.85	AMFFX
RNCCX	0.73	0.52	0.74	0.74		0.45	0.73	0.63	0.7	0.63	RNCCX
FPPPX	0.15	0.57	0.12	0.11	0.45		0.15	-0.01	-0.03	-0.01	FPPPX
AMEFX	1.0	0.52	0.9	0.9	0.73	0.15		0.65	0.78	0.65	AMEFX
RNGGX	0.65	0.31	0.84	0.85	0.63	-0.01	0.65		0.87	1.0	RNGGX
RNGFX	0.78	0.29	0.82	0.83	0.7	-0.03	0.78	0.87		0.87	RNGFX
RNGHX	0.65	0.31	0.84	0.85	0.63	-0.01	0.65	1.0	0.87		RNGHX
	AMECX	RNEBX	AMFCX	AMFFX	RNCCX	FPPPX	AMEFX	RNGGX	RNGFX	RNGHX

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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
AMFFX	+ 1.0	AMFCX
RNGHX	+ 1.0	RNGGX
AMFCX	+ 0.9	AMECX
AMFFX	+ 0.9	AMECX
AMEFX	+ 0.9	AMFCX

High negative correlations

RNGFX	- 0.03	FPPPX
RNGHX	- 0.01	FPPPX
RNGGX	- 0.01	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	Treynor Ratio	Potential Upside	Value @Risk	Maximum Drawdown
AMECX	0.39	(0.09)	(0.51)	0.66	(0.72)	5.01
RNEBX	0.56	(0.12)	(1.04)	0.90	(1.32)	5.40
AMFCX	0.52	(0.08)	(3.50)	0.84	(0.88)	6.86
AMFFX	0.52	(0.08)	(3.23)	0.83	(0.86)	6.99
RNCCX	0.30	(0.07)	(0.50)	0.52	(0.52)	2.14
FPPPX	0.11	(0.03)	1.63	0.21	(0.21)	0.75
AMEFX	0.40	(0.09)	(0.51)	0.66	(0.73)	5.05
RNGGX	0.83	(0.06)	8.73	1.35	(1.96)	11.08
RNGFX	0.85	(0.09)	(0.11)	1.35	(1.97)	11.00
RNGHX	0.83	(0.06)	7.28	1.34	(1.97)	11.07

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