American Funds Correlations

RCMTX Fund  USD 25.74  0.03  0.12%   
The current 90-days correlation between American Funds 2055 and Transamerica High Yield is 0.46 (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

Poor diversification

The correlation between American Funds 2055 and DJI is 0.65 (i.e., Poor 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

  0.73AMFCX American MutualPairCorr
  0.72AMFFX American MutualPairCorr
  0.9RNGGX New Economy FundPairCorr
  0.9RNGFX New Economy FundPairCorr
  0.9RNGHX New Economy FundPairCorr
  0.89RNGBX New Economy FundPairCorr
  0.88RNGAX New Economy FundPairCorr
  0.9RNGEX New Economy FundPairCorr
  0.9RNNEX New Economy FundPairCorr
  0.98CDJAX American Funds CollegePairCorr
  0.9AMPCX Amcap Fund ClassPairCorr
  0.91AMPFX Amcap Fund ClassPairCorr
  0.93RNPBX New PerspectivePairCorr
  0.93RNPAX New PerspectivePairCorr
  0.93RNPHX New PerspectivePairCorr
  0.93RNPGX New PerspectivePairCorr
  0.93RNPCX New PerspectivePairCorr
  0.93RNPFX New PerspectivePairCorr
  0.93RNPEX New PerspectivePairCorr
  0.72AMRMX American MutualPairCorr
  0.72AMRFX American MutualPairCorr

Moving against American Mutual Fund

  0.37FPPPX American Funds PresePairCorr
  0.4CEAMX Short Term BondPairCorr
  0.37SBFFX Short Term BondPairCorr
  0.32AMUSX Us Government SecuritiesPairCorr

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.