Investment Correlations

ICAFX Fund

USD 56.79 0.04 0.07%

The current 90-days correlation between Investment Of America and Putnam Convertible Securities is 0.7 (i.e., Poor diversification). The correlation of Investment 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.

Investment Correlation With Market

Poor diversification

The correlation between Investment Of America and DJI is 0.74 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Investment Of America 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 Investment Of America. 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 census.

Moving together with Investment Mutual Fund

0.78	AMFCX	American Mutual	Pair Corr
0.78	AMFFX	American Mutual	Pair Corr
0.98	RNGBX	New Economy Fund	Pair Corr
0.89	RNPAX	New Perspective	Pair Corr
0.89	RNPGX	New Perspective	Pair Corr
0.94	ANCFX	American Funds Funda	Pair Corr
0.98	ANEFX	New Economy Fund	Pair Corr
0.98	ANFFX	New Economy Fund	Pair Corr
0.89	NPFFX	New Perspective	Pair Corr
0.88	PGGFX	American Funds Global	Pair Corr
0.89	ANWPX	New Perspective	Pair Corr
0.88	CWGIX	Capital World Growth	Pair Corr
0.88	CWGFX	Capital World Growth	Pair Corr
0.88	CWGCX	Capital World Growth	Pair Corr
0.88	CWICX	Capital World Growth	Pair Corr
0.88	CWIAX	Capital World Growth	Pair Corr
0.91	FAITX	American Funds 2050	Pair Corr
0.94	CFNFX	American Funds Funda	Pair Corr
0.94	CFNEX	American Funds Funda	Pair Corr
0.83	GWPDX	American Funds Growth	Pair Corr
0.83	GWPEX	American Funds Growth	Pair Corr
0.83	GWPFX	American Funds Growth	Pair Corr
0.92	FAWTX	American Funds 2060	Pair Corr

Moving against Investment Mutual Fund

0.37	FPPPX	American Funds Prese	Pair Corr
0.33	AMUSX	Us Government Securities	Pair Corr
0.37	CFAMX	Short Term Bond	Pair Corr
0.37	RPPGX	American Funds Prese	Pair Corr
0.33	CGTCX	Us Government Securities	Pair Corr
0.33	CGTAX	Us Government Securities	Pair Corr

Related Correlations Analysis

	PCNTX	GCV	LCFYX	ARBOX	FSAWX	XAVKX
PCNTX		0.42	0.9	-0.52	-0.66	0.95	PCNTX
GCV	0.42		0.65	0.31	0.2	0.51	GCV
LCFYX	0.9	0.65		-0.12	-0.28	0.94	LCFYX
ARBOX	-0.52	0.31	-0.12		0.98	-0.35	ARBOX
FSAWX	-0.66	0.2	-0.28	0.98		-0.5	FSAWX
XAVKX	0.95	0.51	0.94	-0.35	-0.5		XAVKX
	PCNTX	GCV	LCFYX	ARBOX	FSAWX	XAVKX

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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

FSAWX	+ 0.98	ARBOX
XAVKX	+ 0.95	PCNTX
XAVKX	+ 0.94	LCFYX
LCFYX	+ 0.9	PCNTX
LCFYX	+ 0.65	GCV
XAVKX	+ 0.51	GCV

High negative correlations

FSAWX	- 0.66	PCNTX
ARBOX	- 0.52	PCNTX
XAVKX	- 0.5	FSAWX
XAVKX	- 0.35	ARBOX
FSAWX	- 0.28	LCFYX
ARBOX	- 0.12	LCFYX

Risk-Adjusted Indicators

There is a big difference between Investment Mutual Fund performing well and Investment 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 Investment's 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	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
PCNTX	0.64	(0.06)	0.00	(0.16)	0.00	1.07	(1.68)	3.46
GCV	0.92	0.01	0.00	(0.05)	0.00	2.17	(2.14)	6.16
LCFYX	0.65	(0.01)	0.00	(0.10)	0.00	1.12	(1.42)	3.20
ARBOX	0.05	0.02	0.00	0.89	0.00	0.09	0.00	0.18
FSAWX	0.08	0.04	1.09	(1.82)	(0.14)	0.19	(0.10)	0.38
XAVKX	0.53	(0.04)	0.00	(0.17)	0.00	0.90	(1.14)	2.56

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