American Funds Correlations

RCMTX Fund  USD 26.09  0.40  1.51%   
The current 90-days correlation between American Funds 2055 and Franklin Natural Resources is 0.17 (i.e., Average 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

Weak diversification

The correlation between American Funds 2055 and DJI is 0.37 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds 2055 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 2055. 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 estimate.

Moving together with American Mutual Fund

  0.72RNEBX New World FundPairCorr
  0.69RNCCX American Funds IncomePairCorr
  0.68RNGGX New Economy FundPairCorr
  0.68RNGFX New Economy Fund Potential GrowthPairCorr
  0.68RNGHX New Economy FundPairCorr
  0.64RNGBX New Economy FundPairCorr
  0.64RNGAX New Economy FundPairCorr
  0.79RNGEX New Economy FundPairCorr
  0.66RNGCX New Economy FundPairCorr
  0.69FPTPX American Funds ConsePairCorr
  0.66RNNEX New Economy FundPairCorr
  0.84CDJAX American Funds CollegePairCorr
  0.66AMPCX Amcap Fund ClassPairCorr
  0.71AMPFX Amcap Fund ClassPairCorr
  0.75RNPBX New PerspectivePairCorr
  0.75RNPAX New PerspectivePairCorr
  0.77RNPHX New PerspectivePairCorr
  0.77RNPGX New PerspectivePairCorr
  0.82RNPFX New PerspectivePairCorr
  0.77RNPEX New PerspectivePairCorr
  0.61AMRFX American MutualPairCorr
  0.73RNWFX New World Fund Potential GrowthPairCorr
  0.78RNWEX New World Fund Potential GrowthPairCorr

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   
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VENAXBACCX
BACCXFRNRX
FIKAXFRNRX
VENAXFRNRX
BACCXFNCRX
  
High negative correlations   
VENAXTREIX

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.