American Funds Correlations

FSFWX Fund

USD 67.36 0.04 0.06%

The current 90-days correlation between American Funds Smallcap and Rational Dividend Capture is 0.82 (i.e., Very 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

Very weak diversification

The correlation between American Funds Smallcap and DJI is 0.51 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Smallcap 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 Smallcap. 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 housing.

Moving together with American Mutual Fund

0.66	AMECX	Income Fund	Pair Corr
0.71	RNEBX	New World Fund	Pair Corr
0.67	RNCCX	American Funds Income	Pair Corr
0.66	AMEFX	Income Fund	Pair Corr
0.83	RNGGX	New Economy Fund	Pair Corr
0.83	RNGFX	New Economy Fund	Pair Corr
0.83	RNGHX	New Economy Fund	Pair Corr
0.93	RNGBX	New Economy Fund	Pair Corr
0.83	RNGAX	New Economy Fund	Pair Corr
0.83	RNGEX	New Economy Fund	Pair Corr
0.83	RNGCX	New Economy Fund	Pair Corr
0.72	AMHIX	American High Income	Pair Corr
0.73	TEBCX	Tax Exempt Bond	Pair Corr
0.71	TECCX	Tax Exempt Fund	Pair Corr
0.71	TEAFX	Tax Exempt Bond	Pair Corr
0.7	TECFX	Tax Exempt Fund	Pair Corr
0.69	TEFEX	Tax Exempt Fund	Pair Corr
0.93	RNNEX	New Economy Fund	Pair Corr
0.7	CDJAX	American Funds College	Pair Corr
0.83	AMPCX	Amcap Fund Class	Pair Corr
0.95	AMPFX	Amcap Fund Class	Pair Corr
0.87	RNPBX	New Perspective	Pair Corr
0.88	RNPAX	New Perspective	Pair Corr
0.72	RNPHX	New Perspective	Pair Corr
0.72	RNPGX	New Perspective	Pair Corr
0.85	RNPCX	New Perspective	Pair Corr
0.72	RNPFX	New Perspective	Pair Corr
0.86	RNPEX	New Perspective	Pair Corr
0.81	AMRMX	American Mutual	Pair Corr
0.81	AMRFX	American Mutual	Pair Corr
0.69	AMUSX	Us Government Securities	Pair Corr
0.82	RNWFX	New World Fund	Pair Corr

Related Correlations Analysis

	HDCAX	FFCDAX	FSULTX	MFTFX	FKHEMX	WMCANX	FLAKQX	OPTCX
HDCAX		0.08	-0.11	0.6	0.87	0.66	0.68	0.48	HDCAX
FFCDAX	0.08		0.6	-0.33	0.45	0.48	0.49	-0.23	FFCDAX
FSULTX	-0.11	0.6		-0.5	0.25	0.58	0.63	-0.35	FSULTX
MFTFX	0.6	-0.33	-0.5		0.55	0.19	0.27	0.57	MFTFX
FKHEMX	0.87	0.45	0.25	0.55		0.81	0.73	0.35	FKHEMX
WMCANX	0.66	0.48	0.58	0.19	0.81		0.88	0.04	WMCANX
FLAKQX	0.68	0.49	0.63	0.27	0.73	0.88		0.12	FLAKQX
OPTCX	0.48	-0.23	-0.35	0.57	0.35	0.04	0.12		OPTCX
	HDCAX	FFCDAX	FSULTX	MFTFX	FKHEMX	WMCANX	FLAKQX	OPTCX

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

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

FLAKQX	+ 0.88	WMCANX
FKHEMX	+ 0.87	HDCAX
WMCANX	+ 0.81	FKHEMX
FLAKQX	+ 0.73	FKHEMX
FLAKQX	+ 0.68	HDCAX
WMCANX	+ 0.66	HDCAX

High negative correlations

MFTFX	- 0.5	FSULTX
OPTCX	- 0.35	FSULTX
MFTFX	- 0.33	FFCDAX
OPTCX	- 0.23	FFCDAX
FSULTX	- 0.11	HDCAX

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
HDCAX	0.48	0.02	0.04	0.04	0.54	(0.58)	0.95	(0.90)	2.68
FFCDAX	0.14	0.00	0.03	(0.10)	0.20	(0.16)	0.21	(0.21)	1.03
FSULTX	0.28	0.03	0.10	0.57	0.31	(0.30)	0.61	(0.42)	1.75
MFTFX	1.24	0.07	0.04	(9.96)	1.59	(1.28)	2.48	(2.63)	6.97
FKHEMX	0.64	0.03	0.03	1.76	0.88	(0.72)	1.38	(2.00)	3.83
WMCANX	0.48	0.07	0.10	0.18	0.53	(0.57)	1.07	(1.15)	2.55
FLAKQX	0.64	0.06	0.07	0.28	0.78	(0.80)	1.20	(1.23)	3.60
OPTCX	0.09	0.01	0.05	(0.95)	0.00	(0.17)	0.21	(0.21)	0.93

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC