American Funds Correlations

FBCTX Fund  USD 13.72  0.02  0.15%   
The current 90-days correlation between American Funds 2020 and Wesmark Government Bond is 0.25 (i.e., Modest 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 2020 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 American Funds 2020 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 2020. 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

  0.92AMECX Income FundPairCorr
  0.86RNEBX New World FundPairCorr
  0.7AMFCX American MutualPairCorr
  0.7AMFFX American MutualPairCorr
  0.92RNCCX American Funds IncomePairCorr
  0.9AMEFX Income FundPairCorr
  0.61AMHIX American High IncomePairCorr
  0.66TEBCX Tax Exempt BondPairCorr
  0.62TECCX Tax Exempt FundPairCorr
  0.92FPTPX American Funds ConsePairCorr
  0.64TECFX Tax Exempt FundPairCorr
  0.63TEFEX Tax Exempt FundPairCorr
  0.64RNPBX New PerspectivePairCorr
  0.66RNPFX New PerspectivePairCorr
  0.84AMRMX American MutualPairCorr
  0.84AMRFX American MutualPairCorr
  0.93RNRPX American Funds RetirementPairCorr
  0.76TEPAX American Funds TaxPairCorr
  0.67TEPFX American Funds TaxPairCorr
  0.86RNWFX New World FundPairCorr
  0.86RNWEX New World FundPairCorr
  0.86RNWGX New World FundPairCorr
  0.86RNWCX New World FundPairCorr
  0.82CDWFX American Funds DevelopingPairCorr
  0.81CDWCX American Funds DevelopingPairCorr
  0.81CDWAX American Funds DevelopingPairCorr
  0.64ANBEX American Funds StrategicPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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.