American Funds Correlations

CNLEX Fund  USD 9.31  0.03  0.32%   
The current 90-days correlation between American Funds Inflation and Pnc Balanced Allocation is 0.15 (i.e., Average 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 Inflation and DJI is 0.14 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Inflation 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 Inflation. 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 income.

Moving together with American Mutual Fund

  0.81AMECX Income FundPairCorr
  0.76RNCCX American Funds IncomePairCorr
  0.94FPPPX American Funds PresePairCorr
  0.84AMEFX Income FundPairCorr
  0.88AMHIX American High IncomePairCorr
  0.71TEBCX Tax Exempt BondPairCorr
  0.69TECCX Tax Exempt FundPairCorr
  0.78TEAFX Tax Exempt BondPairCorr
  0.77FPTPX American Funds ConsePairCorr
  0.75TECFX Tax Exempt FundPairCorr
  0.77TEFEX Tax Exempt FundPairCorr
  0.83RNRPX American Funds RetirementPairCorr
  0.96AMUSX Us Government SecuritiesPairCorr
  0.95TEPCX American Funds TaxPairCorr
  0.97TEPAX American Funds TaxPairCorr
  0.96TEPFX American Funds TaxPairCorr

Related Correlations Analysis

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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.