American Funds Correlations

RNCCX Fund

USD 13.58 0.04 0.30%

The current 90-days correlation between American Funds Income and T Rowe Price is 0.78 (i.e., Poor 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

Very weak diversification

The correlation between American Funds Income and DJI is 0.49 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Income 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 Income. 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

0.9	AMECX	Income Fund	Pair Corr
0.83	AMFCX	American Mutual	Pair Corr
0.83	AMFFX	American Mutual	Pair Corr
0.94	FPTPX	American Funds Conse	Pair Corr
0.88	RNPGX	New Perspective	Pair Corr
0.84	AMRFX	American Mutual	Pair Corr
0.87	RNWGX	New World Fund	Pair Corr
0.82	CDWFX	American Funds Developing	Pair Corr
0.75	ANCFX	American Funds Funda	Pair Corr
0.88	ANWPX	New Perspective	Pair Corr
0.88	ANWFX	New Perspective	Pair Corr
0.84	CWGIX	Capital World Growth	Pair Corr
0.95	FAUTX	American Funds 2040	Pair Corr
0.82	CGTCX	Us Government Securities	Pair Corr
0.79	CGVGX	American Funds Global	Pair Corr
0.87	RRPPX	American Funds Retirement	Pair Corr
0.93	FCJTX	American Funds 2055	Pair Corr
0.83	RRQPX	American Funds Retirement	Pair Corr
0.89	RROPX	American Funds Retirement	Pair Corr
0.95	AAGTX	American Funds 2040	Pair Corr
0.8	ABALX	American Balanced	Pair Corr
0.78	ABNFX	Bond Fund	Pair Corr
0.9	RCWGX	Capital World Bond	Pair Corr
0.88	FFPNX	American Funds New	Pair Corr
0.88	REGAX	American Funds Emerging	Pair Corr
0.86	REJTX	American Funds 2015	Pair Corr
0.92	RERFX	Europacific Growth	Pair Corr
0.84	RWIGX	Capital World Growth	Pair Corr
0.75	RFNFX	American Funds Funda	Pair Corr
0.92	AEPGX	Europacific Growth	Pair Corr
0.92	AEPFX	Europacific Growth	Pair Corr
0.81	USGFX	Us Government Securities	Pair Corr
0.74	RGAGX	Growth Fund	Pair Corr
0.72	RGACX	Growth Fund	Pair Corr
0.86	RGTFX	American Funds Global	Pair Corr
0.81	RGVAX	Us Government Securities	Pair Corr
0.83	RGVCX	Us Government Securities	Pair Corr
0.81	RGVJX	Us Government Securities	Pair Corr

Related Correlations Analysis

	TRSZX	IAAEX	BSMDX	TRZZX	OWLLX	TRMIX	ESCIX
TRSZX		0.56	0.92	0.61	0.81	0.63	0.2	TRSZX
IAAEX	0.56		0.42	0.9	0.86	0.88	-0.33	IAAEX
BSMDX	0.92	0.42		0.46	0.73	0.47	0.15	BSMDX
TRZZX	0.61	0.9	0.46		0.89	0.99	-0.36	TRZZX
OWLLX	0.81	0.86	0.73	0.89		0.89	-0.27	OWLLX
TRMIX	0.63	0.88	0.47	0.99	0.89		-0.36	TRMIX
ESCIX	0.2	-0.33	0.15	-0.36	-0.27	-0.36		ESCIX
	TRSZX	IAAEX	BSMDX	TRZZX	OWLLX	TRMIX	ESCIX

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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

TRMIX	+ 0.99	TRZZX
BSMDX	+ 0.92	TRSZX
TRZZX	+ 0.9	IAAEX
OWLLX	+ 0.89	TRZZX
TRMIX	+ 0.89	OWLLX
TRMIX	+ 0.88	IAAEX

High negative correlations

ESCIX	- 0.36	TRMIX
ESCIX	- 0.36	TRZZX
ESCIX	- 0.33	IAAEX
ESCIX	- 0.27	OWLLX

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 Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
TRSZX	0.89	(0.01)	0.00	(0.02)	0.00	0.00	1.63	(1.64)	6.12
IAAEX	0.67	(0.11)	0.00	(0.38)	0.00	0.00	1.20	(1.08)	9.17
BSMDX	1.02	(0.02)	0.00	(0.02)	0.00	0.00	1.82	(1.90)	6.86
TRZZX	0.92	(0.22)	0.00	(0.27)	0.00	0.00	1.53	(1.93)	15.26
OWLLX	0.78	(0.11)	0.00	(0.13)	0.00	0.00	1.64	(1.78)	5.77
TRMIX	0.75	(0.18)	0.00	(0.27)	0.00	0.00	1.21	(1.35)	12.98
ESCIX	0.65	0.06	0.07	0.25	0.83	(0.71)	1.22	(1.34)	3.53

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