American Funds Correlations

Mutual Funds . USA . 
Fund . American Funds 2040
FAUTX Fund  USD 20.38  0.03  0.15%   
The current 90-days correlation between American Funds 2040 and American Funds 2035 is 0.99 (i.e., No risk reduction). 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 2040 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 2040 and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in American Funds 2040. 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

  0.65RNEBX New World FundPairCorr
  0.8AMFCX American MutualPairCorr
  0.79AMFFX American MutualPairCorr
  0.86RNGGX New Economy FundPairCorr
  0.86RNGFX New Economy FundPairCorr
  0.86RNGHX New Economy FundPairCorr
  0.85RNGBX New Economy FundPairCorr
  0.84RNGAX New Economy FundPairCorr
  0.86RNGEX New Economy FundPairCorr
  0.86RNGCX New Economy FundPairCorr
  0.86RNNEX New Economy FundPairCorr
  0.98CDJAX American Funds CollegePairCorr
  0.84AMPCX Amcap Fund ClassPairCorr
  0.86AMPFX Amcap Fund ClassPairCorr
  0.94RNPBX New PerspectivePairCorr
  0.94RNPAX New PerspectivePairCorr
  0.94RNPHX New PerspectivePairCorr
  0.95RNPGX New PerspectivePairCorr
  0.94RNPCX New PerspectivePairCorr
  0.95RNPFX New PerspectivePairCorr
  0.94RNPEX New PerspectivePairCorr
  0.79AMRMX American MutualPairCorr
  0.79AMRFX American MutualPairCorr
  0.63RNWFX New World FundPairCorr

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.

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