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

0.79	AMECX	Income Fund	Pair Corr
0.83	RNEBX	New World Fund	Pair Corr
0.68	AMFCX	American Mutual	Pair Corr
0.68	AMFFX	American Mutual	Pair Corr
0.79	RNCCX	American Funds Income	Pair Corr
0.79	AMEFX	Income Fund	Pair Corr
0.8	FPTPX	American Funds Conse	Pair Corr
0.61	RNPAX	New Perspective	Pair Corr
0.68	AMRMX	American Mutual	Pair Corr
0.68	AMRFX	American Mutual	Pair Corr
0.89	RNRPX	American Funds Retirement	Pair Corr
0.61	TEPAX	American Funds Tax	Pair Corr
0.84	RNWGX	New World Fund	Pair Corr
1.0	RNWCX	New World Fund	Pair Corr
0.82	CDWFX	American Funds Developing	Pair Corr
0.82	CDWCX	American Funds Developing	Pair Corr
0.81	CDWAX	American Funds Developing	Pair Corr
0.66	CWBFX	Capital World Bond	Pair Corr

Related Correlations Analysis

	AMECX	REJTX	RNEBX	AMFCX	RNCCX	FPPPX	REITX	AMEFX	RNGGX
AMECX		0.93	0.87	0.86	0.97	0.71	0.48	0.99	0.17	AMECX
REJTX	0.93		0.85	0.82	0.97	0.65	0.55	0.92	0.18	REJTX
RNEBX	0.87	0.85		0.77	0.88	0.5	0.58	0.87	0.3	RNEBX
AMFCX	0.86	0.82	0.77		0.87	0.29	0.83	0.8	0.62	AMFCX
RNCCX	0.97	0.97	0.88	0.87		0.65	0.56	0.96	0.22	RNCCX
FPPPX	0.71	0.65	0.5	0.29	0.65		-0.24	0.77	-0.53	FPPPX
REITX	0.48	0.55	0.58	0.83	0.56	-0.24		0.39	0.91	REITX
AMEFX	0.99	0.92	0.87	0.8	0.96	0.77	0.39		0.08	AMEFX
RNGGX	0.17	0.18	0.3	0.62	0.22	-0.53	0.91	0.08		RNGGX
	AMECX	REJTX	RNEBX	AMFCX	RNCCX	FPPPX	REITX	AMEFX	RNGGX

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

AMEFX	+ 0.99	AMECX
RNCCX	+ 0.97	AMECX
RNCCX	+ 0.97	REJTX
AMEFX	+ 0.96	RNCCX
REJTX	+ 0.93	AMECX
AMEFX	+ 0.92	REJTX

High negative correlations

RNGGX	- 0.53	FPPPX
REITX	- 0.24	FPPPX

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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
AMECX	0.43	0.09	0.24	0.13	0.43	(0.47)	0.94	(1.09)	2.61
REJTX	0.31	0.02	0.13	(0.01)	0.48	(0.34)	0.63	(0.63)	2.37
RNEBX	0.65	0.08	0.14	0.09	0.79	(0.67)	1.23	(1.60)	5.22
AMFCX	0.55	0.06	0.12	0.02	0.66	(0.58)	1.09	(1.20)	2.78
RNCCX	0.34	0.04	0.17	0.05	0.42	(0.38)	0.75	(0.74)	1.95
FPPPX	0.11	0.03	0.55	1.40	0.00	(0.17)	0.32	(0.21)	0.64
REITX	0.68	(0.01)	0.00	(0.08)	0.00	0.00	1.34	(1.54)	3.82
AMEFX	0.42	0.10	0.28	0.17	0.34	(0.45)	0.95	(0.83)	2.23
RNGGX	0.97	(0.01)	0.00	(0.08)	0.00	0.00	1.79	(2.60)	5.30

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