New World Correlations

RNWEX Fund  USD 80.06  0.45  0.56%   
The current 90-days correlation between New World Fund and Income Fund Of is -0.11 (i.e., Good diversification). The correlation of New 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.

New World Correlation With Market

Significant diversification

The correlation between New World Fund and DJI is 0.01 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding New World 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 World 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 income.

Moving together with New Mutual Fund

  0.79AMECX Income FundPairCorr
  0.83RNEBX New World FundPairCorr
  0.68AMFCX American MutualPairCorr
  0.68AMFFX American MutualPairCorr
  0.79RNCCX American Funds IncomePairCorr
  0.79AMEFX Income FundPairCorr
  0.8FPTPX American Funds ConsePairCorr
  0.61RNPAX New PerspectivePairCorr
  0.68AMRMX American MutualPairCorr
  0.68AMRFX American MutualPairCorr
  0.89RNRPX American Funds RetirementPairCorr
  0.61TEPAX American Funds TaxPairCorr
  0.84RNWGX New World FundPairCorr
  1.0RNWCX New World FundPairCorr
  0.82CDWFX American Funds DevelopingPairCorr
  0.82CDWCX American Funds DevelopingPairCorr
  0.81CDWAX American Funds DevelopingPairCorr
  0.66CWBFX Capital World BondPairCorr

Related Correlations Analysis

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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   
AMEFXAMECX
RNCCXAMECX
RNCCXREJTX
AMEFXRNCCX
REJTXAMECX
AMEFXREJTX
  
High negative correlations   
RNGGXFPPPX
REITXFPPPX

Risk-Adjusted Indicators

There is a big difference between New Mutual Fund performing well and New 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 New 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.