American Funds Correlations

RFNCX Fund  USD 81.66  0.69  0.85%   
The current 90-days correlation between American Funds Funda and Income Fund Of 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 Fundamental and DJI is 0.67 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental 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 Fundamental. 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 main economic indicators.

Moving together with American Mutual Fund

  0.68AMFCX American MutualPairCorr
  0.69AMFFX American MutualPairCorr
  0.61RNCCX American Funds IncomePairCorr
  0.91RNGGX New Economy FundPairCorr
  0.91RNGFX New Economy FundPairCorr
  0.91RNGHX New Economy FundPairCorr
  0.89RNGBX New Economy FundPairCorr
  0.88RNGAX New Economy FundPairCorr
  0.91RNGEX New Economy FundPairCorr
  0.9RNGCX New Economy FundPairCorr
  0.64FPTPX American Funds ConsePairCorr
  0.9RNNEX New Economy FundPairCorr
  0.8CDJAX American Funds CollegePairCorr
  0.92AMPCX Amcap Fund ClassPairCorr
  0.92AMPFX Amcap Fund ClassPairCorr
  0.82RNPBX New PerspectivePairCorr
  0.82RNPAX New PerspectivePairCorr
  0.83RNPHX New PerspectivePairCorr
  0.83RNPGX New PerspectivePairCorr
  0.82RNPCX New PerspectivePairCorr
  0.83RNPFX New PerspectivePairCorr
  0.83RNPEX New PerspectivePairCorr
  0.69AMRMX American MutualPairCorr
  0.69AMRFX American MutualPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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   
AMEFXAMECX
AMFFXAMFCX
RNGFXRNGGX
RNGHXRNGGX
RNGHXRNGFX
AMFCXAMECX
  
High negative correlations   
RNGFXFPPPX
RNGGXFPPPX
RNGHXFPPPX

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.
Mean DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
AMECX  0.39 (0.11) 0.00 (0.19) 0.00 
 0.66 
 5.01 
RNEBX  0.56 (0.11) 0.00 (0.31) 0.00 
 1.00 
 5.40 
AMFCX  0.50 (0.12) 0.00 (0.14) 0.00 
 0.84 
 6.86 
AMFFX  0.50 (0.12) 0.00 (0.13) 0.00 
 0.83 
 6.99 
RNCCX  0.25 (0.04) 0.00 (0.10) 0.00 
 0.52 
 2.14 
FPPPX  0.11 (0.02) 0.00 (1.68) 0.00 
 0.21 
 0.75 
AMEFX  0.39 (0.11) 0.00 (0.19) 0.00 
 0.66 
 5.05 
RNGGX  0.82 (0.10) 0.00 (0.08) 0.00 
 1.35 
 11.08 
RNGFX  0.82 (0.10) 0.00 (0.08) 0.00 
 1.35 
 11.00 
RNGHX  0.82 (0.10) 0.00 (0.08) 0.00 
 1.34 
 11.07