New Perspective Correlations

RNPBX Fund

USD 58.83 0.69 1.19%

The current 90-days correlation between New Perspective and Applied Finance Explorer is 0.65 (i.e., Poor diversification). The correlation of New Perspective 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.

New Perspective Correlation With Market

Very weak diversification

The correlation between New Perspective Fund and DJI is 0.47 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding New Perspective Fund 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 New Perspective Fund. 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 bureau of labor statistics.

Moving together with New Mutual Fund

0.78	AMFCX	American Mutual	Pair Corr
0.78	AMFFX	American Mutual	Pair Corr
0.86	RNGBX	New Economy Fund	Pair Corr
1.0	RNPGX	New Perspective	Pair Corr
0.7	RNWGX	New World Fund	Pair Corr
0.87	ANFFX	New Economy Fund	Pair Corr
1.0	NPFFX	New Perspective	Pair Corr
0.94	FAITX	American Funds 2050	Pair Corr
0.81	GWPEX	American Funds Growth	Pair Corr
0.88	CGFFX	Growth Fund	Pair Corr
0.81	CGRGX	American Funds Growth	Pair Corr
0.67	RRCTX	American Funds 2020	Pair Corr
0.9	GGPCX	American Funds Global	Pair Corr
0.93	FCJTX	American Funds 2055	Pair Corr
0.93	FCKTX	American Funds 2060	Pair Corr
0.93	RAFTX	American Funds 2035	Pair Corr
0.84	RAFGX	Amcap Fund Class	Pair Corr
0.94	RAHTX	American Funds 2045	Pair Corr
0.87	RAMHX	American Balanced	Pair Corr
0.77	RSLBX	Smallcap World	Pair Corr

Related Correlations Analysis

	AFDVX	VSFSX	ARSMX	IAAEX	ABYSX	AOPAX	SMVTX
AFDVX		0.98	0.89	0.47	0.99	-0.23	0.95	AFDVX
VSFSX	0.98		0.87	0.43	0.99	-0.22	0.95	VSFSX
ARSMX	0.89	0.87		0.54	0.87	-0.12	0.91	ARSMX
IAAEX	0.47	0.43	0.54		0.41	0.21	0.53	IAAEX
ABYSX	0.99	0.99	0.87	0.41		-0.23	0.95	ABYSX
AOPAX	-0.23	-0.22	-0.12	0.21	-0.23		-0.11	AOPAX
SMVTX	0.95	0.95	0.91	0.53	0.95	-0.11		SMVTX
	AFDVX	VSFSX	ARSMX	IAAEX	ABYSX	AOPAX	SMVTX

Click cells to compare fundamentals

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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

ABYSX	+ 0.99	AFDVX
ABYSX	+ 0.99	VSFSX
VSFSX	+ 0.98	AFDVX
SMVTX	+ 0.95	AFDVX
SMVTX	+ 0.95	VSFSX
SMVTX	+ 0.95	ABYSX

High negative correlations

AOPAX	- 0.23	ABYSX
AOPAX	- 0.23	AFDVX
AOPAX	- 0.22	VSFSX
AOPAX	- 0.12	ARSMX
SMVTX	- 0.11	AOPAX

Risk-Adjusted Indicators

There is a big difference between New Mutual Fund performing well and New Perspective 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 New Perspective'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
AFDVX	0.81	(0.11)	0.00	(0.19)	0.00	0.00	1.55	(1.93)	4.58
VSFSX	0.87	(0.10)	0.00	(0.17)	0.00	0.00	1.48	(2.07)	5.18
ARSMX	0.82	(0.17)	0.00	(0.29)	0.00	0.00	1.13	(1.56)	8.46
IAAEX	0.80	(0.12)	0.00	(0.32)	0.00	0.00	1.41	(1.48)	9.17
ABYSX	0.85	(0.10)	0.00	(0.17)	0.00	0.00	1.38	(2.08)	4.03
AOPAX	0.48	0.05	0.12	0.04	0.67	(0.51)	1.15	(1.14)	3.90
SMVTX	1.01	(0.15)	0.00	(0.22)	0.00	0.00	1.39	(2.22)	9.55

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