Capital World Correlations

RCWGX Fund  USD 15.95  0.05  0.31%   
The current 90-days correlation between Capital World Bond and Pgim Esg High is 0.46 (i.e., Very weak diversification). 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

Significant diversification

The correlation between Capital World Bond and DJI is 0.06 (i.e., Significant 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 price.

Moving together with Capital Mutual Fund

  0.78AMECX Income FundPairCorr
  0.79RNCCX American Funds IncomePairCorr
  0.9FPPPX American Funds PresePairCorr
  0.82AMEFX Income FundPairCorr
  0.89AMHIX American High IncomePairCorr
  0.75TEBCX Tax Exempt BondPairCorr
  0.75TECCX Tax Exempt FundPairCorr
  0.8TEAFX Tax Exempt BondPairCorr
  0.79FPTPX American Funds ConsePairCorr
  0.79TECFX Tax Exempt FundPairCorr
  0.79TEFEX Tax Exempt FundPairCorr
  0.81RNRPX American Funds RetirementPairCorr
  0.93AMUSX Us Government SecuritiesPairCorr
  0.92TEPCX American Funds TaxPairCorr
  0.94TEPAX American Funds TaxPairCorr
  0.94TEPFX American Funds TaxPairCorr
  0.62RNWFX New World FundPairCorr

Moving against Capital Mutual Fund

  0.37AMPFX Amcap Fund ClassPairCorr
  0.36AMPCX Amcap Fund ClassPairCorr

Related Correlations Analysis

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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.