American Funds Correlations

GWPCX Fund

USD 24.13 0.41 1.73%

The current 90-days correlation between American Funds Growth and Scharf Global Opportunity is -0.14 (i.e., Good 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

Good diversification

The correlation between American Funds Growth and DJI is -0.04 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Growth and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in American Funds Growth. 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 main economic indicators.

Moving together with American Mutual Fund

0.73	RNGHX	New Economy Fund	Pair Corr
0.71	RNGBX	New Economy Fund	Pair Corr
0.73	RNGEX	New Economy Fund	Pair Corr
0.69	CDJAX	American Funds College	Pair Corr
0.78	AMPFX	Amcap Fund Class	Pair Corr
0.66	ANCFX	American Funds Funda	Pair Corr
0.73	ANEFX	New Economy Fund	Pair Corr
0.74	ANFFX	New Economy Fund	Pair Corr
0.71	PGGFX	American Funds Global	Pair Corr

Moving against American Mutual Fund

0.55	AMUSX	Us Government Securities	Pair Corr
0.53	FPPPX	American Funds Prese	Pair Corr
0.32	TEPFX	American Funds Tax	Pair Corr
0.54	CFAAX	Bond Fund	Pair Corr
0.53	RPPCX	American Funds Prese	Pair Corr
0.49	SBFFX	Short Term Bond	Pair Corr
0.49	CFAMX	Short Term Bond	Pair Corr
0.48	ANBGX	American Funds Strategic	Pair Corr
0.43	CWBFX	Capital World Bond	Pair Corr
0.43	WBFFX	Capital World Bond	Pair Corr

Related Correlations Analysis

	WRLDX	IAADX	WABMSX	FFCDAX	FZDAQX	XHYIX	FSULTX	WMCANX
WRLDX		0.84	0.63	0.53	0.56	0.26	0.59	0.54	WRLDX
IAADX	0.84		0.29	0.27	0.37	-0.07	0.71	0.18	IAADX
WABMSX	0.63	0.29		0.5	0.58	0.52	0.12	0.99	WABMSX
FFCDAX	0.53	0.27	0.5		0.78	0.44	0.35	0.5	FFCDAX
FZDAQX	0.56	0.37	0.58	0.78		0.39	0.61	0.56	FZDAQX
XHYIX	0.26	-0.07	0.52	0.44	0.39		-0.03	0.59	XHYIX
FSULTX	0.59	0.71	0.12	0.35	0.61	-0.03		0.06	FSULTX
WMCANX	0.54	0.18	0.99	0.5	0.56	0.59	0.06		WMCANX
	WRLDX	IAADX	WABMSX	FFCDAX	FZDAQX	XHYIX	FSULTX	WMCANX

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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

WMCANX	+ 0.99	WABMSX
IAADX	+ 0.84	WRLDX
FZDAQX	+ 0.78	FFCDAX
FSULTX	+ 0.71	IAADX
WABMSX	+ 0.63	WRLDX
FSULTX	+ 0.61	FZDAQX

High negative correlations

XHYIX	- 0.07	IAADX
FSULTX	- 0.03	XHYIX

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
WRLDX	0.64	(0.02)	0.00	0.09	0.00	0.00	1.24	(1.68)	2.96
IAADX	0.20	0.01	0.17	0.20	0.16	(0.25)	0.44	(0.33)	0.88
WABMSX	0.61	0.03	0.06	0.02	0.79	(0.62)	1.38	(1.29)	3.66
FFCDAX	0.12	(0.01)	0.00	0.93	0.00	0.00	0.21	(0.41)	1.14
FZDAQX	0.12	0.00	0.10	(0.06)	0.18	(0.15)	0.21	(0.41)	1.03
XHYIX	0.16	(0.03)	0.00	0.81	0.00	0.00	0.25	(0.49)	1.31
FSULTX	0.28	0.01	0.11	0.50	0.35	(0.30)	0.61	(0.51)	1.75
WMCANX	0.61	0.04	0.06	0.03	0.75	(0.67)	1.37	(1.29)	3.48

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