Capital Income Correlations

RIRHX Fund

USD 73.20 0.29 0.40%

The current 90-days correlation between Capital Income Builder and Ab Global Real is 0.64 (i.e., Poor diversification). The correlation of Capital Income 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 Income Correlation With Market

Poor diversification

The correlation between Capital Income Builder and DJI is 0.71 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder 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 Income Builder. 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 rate.

Moving together with Capital Mutual Fund

0.74	AMECX	Income Fund	Pair Corr
0.83	RNEBX	New World Fund	Pair Corr
0.66	AMFCX	American Mutual	Pair Corr
0.65	AMFFX	American Mutual	Pair Corr
0.91	RNCCX	American Funds Income	Pair Corr
0.89	FPTPX	American Funds Conse	Pair Corr
0.78	RNPBX	New Perspective	Pair Corr
0.78	RNPAX	New Perspective	Pair Corr
0.76	RNPGX	New Perspective	Pair Corr
0.77	RNPCX	New Perspective	Pair Corr
0.76	RNPFX	New Perspective	Pair Corr
0.65	AMRMX	American Mutual	Pair Corr
0.65	AMRFX	American Mutual	Pair Corr
0.95	RNRPX	American Funds Retirement	Pair Corr
0.83	RNWGX	New World Fund	Pair Corr
0.83	RNWCX	New World Fund	Pair Corr
0.78	NPFCX	New Perspective	Pair Corr
0.76	NPFFX	New Perspective	Pair Corr
0.7	DITFX	American Funds 2050	Pair Corr

Related Correlations Analysis

	AEEIX	SGMAX	GGESX	ARECX	CNGLX	SMYIX	AGAZX	CABIX
AEEIX		-0.11	0.12	1.0	0.2	-0.35	0.01	0.73	AEEIX
SGMAX	-0.11		0.88	-0.14	0.67	0.93	0.66	0.49	SGMAX
GGESX	0.12	0.88		0.1	0.82	0.84	0.73	0.67	GGESX
ARECX	1.0	-0.14	0.1		0.19	-0.37	-0.01	0.71	ARECX
CNGLX	0.2	0.67	0.82	0.19		0.58	0.65	0.59	CNGLX
SMYIX	-0.35	0.93	0.84	-0.37	0.58		0.7	0.33	SMYIX
AGAZX	0.01	0.66	0.73	-0.01	0.65	0.7		0.59	AGAZX
CABIX	0.73	0.49	0.67	0.71	0.59	0.33	0.59		CABIX
	AEEIX	SGMAX	GGESX	ARECX	CNGLX	SMYIX	AGAZX	CABIX

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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

ARECX	+ 1.0	AEEIX
SMYIX	+ 0.93	SGMAX
GGESX	+ 0.88	SGMAX
SMYIX	+ 0.84	GGESX
CNGLX	+ 0.82	GGESX
CABIX	+ 0.73	AEEIX

High negative correlations

SMYIX	- 0.37	ARECX
SMYIX	- 0.35	AEEIX
ARECX	- 0.14	SGMAX
SGMAX	- 0.11	AEEIX
AGAZX	- 0.01	ARECX

Risk-Adjusted Indicators

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

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
AEEIX	0.58	(0.01)	(0.14)	0.07	0.77	(0.59)	1.00	(1.38)	3.39
SGMAX	0.35	0.00	(0.19)	0.12	0.26	(0.42)	0.71	(0.63)	1.58
GGESX	0.60	(0.06)	(0.09)	0.06	0.80	(0.61)	1.12	(1.36)	3.48
ARECX	0.58	(0.02)	(0.14)	0.05	0.75	(0.60)	1.06	(1.33)	3.31
CNGLX	0.54	(0.10)	(0.15)	0.00	0.78	(0.52)	1.04	(1.18)	3.68
SMYIX	0.56	0.00	(0.04)	0.12	0.71	(0.60)	1.47	(1.30)	3.40
AGAZX	0.31	(0.05)	(0.34)	(0.01)	0.34	(0.39)	0.64	(0.62)	2.03
CABIX	0.31	(0.02)	(0.24)	0.07	0.35	(0.34)	0.57	(0.72)	1.86

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