American Funds Correlations

FWCBX Fund  USD 72.46  0.26  0.36%   
The current 90-days correlation between American Funds Capital and Income Fund Of is 0.72 (i.e., 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

AmericanDowDiversified AwayAmericanDowDiversified Away100%

Weak diversification

The correlation between American Funds Capital and DJI is 0.31 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Capital 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 Capital. 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 bureau of labor statistics.

Moving together with American Mutual Fund

  0.95AMECX Income FundPairCorr
  0.89RNEBX New World FundPairCorr
  0.87AMFCX American MutualPairCorr
  0.88AMFFX American MutualPairCorr
  0.95RNCCX American Funds IncomePairCorr
  0.95AMEFX Income FundPairCorr
  0.78RNGGX New Economy FundPairCorr
  0.78RNGFX New Economy FundPairCorr
  0.78RNGHX New Economy FundPairCorr
  0.75RNGBX New Economy FundPairCorr
  0.75RNGAX New Economy FundPairCorr
  0.74RNGEX New Economy FundPairCorr
  0.77RNGCX New Economy FundPairCorr
  0.77AMHIX American High IncomePairCorr
  0.74TEBCX Tax Exempt BondPairCorr
  0.71TECCX Tax Exempt FundPairCorr
  0.76TEAFX Tax Exempt BondPairCorr
  0.95FPTPX American Funds ConsePairCorr
  0.73TECFX Tax Exempt FundPairCorr
  0.74TEFEX Tax Exempt FundPairCorr
  0.73RNNEX New Economy FundPairCorr
  0.92CDJAX American Funds CollegePairCorr
  0.71AMPCX Amcap Fund ClassPairCorr
  0.75AMPFX Amcap Fund ClassPairCorr
  0.89RNPBX New PerspectivePairCorr
  0.87RNPAX New PerspectivePairCorr
  0.9RNPHX New PerspectivePairCorr
  0.9RNPGX New PerspectivePairCorr
  0.9RNPCX New PerspectivePairCorr
  0.91RNPFX New PerspectivePairCorr
  0.9RNPEX New PerspectivePairCorr
  0.88AMRMX American MutualPairCorr
  0.9AMRFX American MutualPairCorr
  0.84RNRPX American Funds RetirementPairCorr
  0.76AMUSX Us Government SecuritiesPairCorr
  0.85TEPCX American Funds TaxPairCorr
  0.82TEPAX American Funds TaxPairCorr
  0.79TEPFX American Funds TaxPairCorr
  0.89RNWFX 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.
Mean DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
AMECX  0.41  0.01  0.02  0.02  0.67 
 0.75 
 2.95 
RNEBX  0.55  0.00  0.00 (0.03) 0.92 
 0.83 
 3.76 
AMFCX  0.52 (0.04) 0.00 (0.05) 0.00 
 0.91 
 5.65 
AMFFX  0.52 (0.03) 0.00 (0.05) 0.00 
 0.91 
 5.60 
RNCCX  0.30  0.01  0.03  0.04  0.46 
 0.53 
 2.16 
FPPPX  0.10  0.01  0.12  0.43  0.00 
 0.21 
 0.75 
AMEFX  0.41  0.01  0.02  0.02  0.68 
 0.79 
 2.95 
RNGGX  0.93 (0.08) 0.00 (0.08) 0.00 
 1.38 
 10.30 
RNGFX  0.93 (0.08) 0.00 (0.08) 0.00 
 1.39 
 10.28 
RNGHX  0.93 (0.08) 0.00 (0.08) 0.00 
 1.40 
 10.43 

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