American Funds Correlations

RBBEX Fund  USD 18.57  0.09  0.49%   
The current 90-days correlation between American Funds Balanced and Fidelity Advisor Financial is 0.47 (i.e., Very weak 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

Average diversification

The correlation between American Funds Balanced and DJI is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Balanced and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in American Funds Balanced. 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 income.

Moving together with American Mutual Fund

  0.74RNCCX American Funds IncomePairCorr
  0.69RNGGX New Economy FundPairCorr
  0.69RNGHX New Economy FundPairCorr
  0.94FPTPX American Funds ConsePairCorr
  0.61TECFX Tax Exempt FundPairCorr
  0.69RNNEX New Economy FundPairCorr
  0.83CDJAX American Funds CollegePairCorr
  0.82RNPBX New PerspectivePairCorr
  0.82RNPAX New PerspectivePairCorr
  0.84RNPHX New PerspectivePairCorr
  0.81RNPGX New PerspectivePairCorr
  0.82RNPCX New PerspectivePairCorr
  0.81RNPFX New PerspectivePairCorr
  0.81RNPEX New PerspectivePairCorr
  0.9RNRPX American Funds RetirementPairCorr

Related Correlations Analysis

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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   
FNPIXFIKBX
FNPIXVFAIX
VFAIXFIKBX
FNPIXIAAEX
IAAEXFIKBX
IAAEXVFAIX
  
High negative correlations   
ICFAXFIKBX
FNPIXICFAX
ICFAXVFAIX
FNPIXMCBXX
IAAEXMCBXX
ICFAXMCBXX

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.