Capital World Correlations

RCWEX Fund  USD 15.98  0.06  0.37%   
The correlation of Capital World 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.

Capital World Correlation With Market

Modest diversification

The correlation between Capital World Bond and DJI is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital World Bond 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 Capital World Bond. 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 Capital Mutual Fund

  0.87AMECX Income FundPairCorr
  0.85RNEBX New World FundPairCorr
  0.86AMFCX American MutualPairCorr
  0.86AMFFX American MutualPairCorr
  0.9RNCCX American Funds IncomePairCorr
  0.9AMEFX Income FundPairCorr
  0.67RNGGX New Economy FundPairCorr
  0.65RNGFX New Economy Fund Potential GrowthPairCorr
  0.65RNGHX New Economy FundPairCorr
  0.66RNGBX New Economy FundPairCorr
  0.64RNGAX New Economy FundPairCorr
  0.65RNGEX New Economy FundPairCorr
  0.66RNGCX New Economy FundPairCorr
  0.92AMHIX American High IncomePairCorr
  0.84TEBCX Tax Exempt BondPairCorr
  0.9TECCX Tax Exempt FundPairCorr
  0.92TEAFX Tax Exempt BondPairCorr
  0.9FPTPX American Funds ConsePairCorr
  0.83TECFX Tax Exempt FundPairCorr
  0.9TEFEX Tax Exempt FundPairCorr
  0.65RNNEX New Economy FundPairCorr
  0.75CDJAX American Funds CollegePairCorr
  0.64AMPCX Amcap Fund ClassPairCorr
  0.65AMPFX Amcap Fund ClassPairCorr
  0.78RNPBX New PerspectivePairCorr
  0.78RNPAX New PerspectivePairCorr
  0.79RNPHX New PerspectivePairCorr
  0.79RNPGX New PerspectivePairCorr
  0.79RNPFX New PerspectivePairCorr
  0.79RNPEX New PerspectivePairCorr
  0.84AMRMX American MutualPairCorr
  0.84AMRFX American MutualPairCorr
  0.72RNRPX American Funds RetirementPairCorr
  0.92AMUSX Us Government SecuritiesPairCorr
  0.84TEPCX American Funds TaxPairCorr
  0.82TEPFX American Funds TaxPairCorr
  0.86RNWFX New World Fund Potential GrowthPairCorr
  0.86RNWHX New World Fund Potential GrowthPairCorr
  0.86RNWGX 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   
HICSXXAVKX
HICSXPCGYX
HICSXFCVSX
PCGYXXAVKX
XAVKXFCVSX
PCGYXFCVSX
  
High negative correlations   
FLXIXFCVSX
FLXIXPCNBX
HICSXPCNBX
PCGYXPCNBX
XAVKXPCNBX
FCVSXPCNBX

Risk-Adjusted Indicators

There is a big difference between Capital Mutual Fund performing well and Capital World 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 Capital World'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.