American High-income Correlations

ABHFX Fund

USD 15.50 0.06 0.39%

The current 90-days correlation between American High Income and Tax Exempt Bond is 0.98 (i.e., Almost no diversification). The correlation of American High-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.

American High-income Correlation With Market

Very good diversification

The correlation between American High Income Municipal and DJI is -0.31 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American High Income Municipal and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American High Income Municipal. 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 census.

Moving together with American Mutual Fund

0.68	FPPPX	American Funds Prese	Pair Corr
1.0	AMHIX	American High Income	Pair Corr
0.95	TEBCX	Tax Exempt Bond	Pair Corr
0.94	TECCX	Tax Exempt Fund	Pair Corr
0.98	TEAFX	Tax Exempt Bond	Pair Corr
0.97	TECFX	Tax Exempt Fund	Pair Corr
0.98	TEFEX	Tax Exempt Fund	Pair Corr
0.95	TEPCX	American Funds Tax	Pair Corr
0.98	TEPAX	American Funds Tax	Pair Corr
0.98	TEPFX	American Funds Tax	Pair Corr

Related Correlations Analysis

	AFTFX	AHICX	AHTFX	BFAFX	LTXFX
AFTFX		0.99	0.27	0.71	0.99	AFTFX
AHICX	0.99		0.37	0.63	0.98	AHICX
AHTFX	0.27	0.37		-0.33	0.25	AHTFX
BFAFX	0.71	0.63	-0.33		0.74	BFAFX
LTXFX	0.99	0.98	0.25	0.74		LTXFX
	AFTFX	AHICX	AHTFX	BFAFX	LTXFX

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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

AHICX	+ 0.99	AFTFX
LTXFX	+ 0.99	AFTFX
LTXFX	+ 0.98	AHICX
LTXFX	+ 0.74	BFAFX
BFAFX	+ 0.71	AFTFX
BFAFX	+ 0.63	AHICX

High negative correlations

BFAFX

- 0.33

AHTFX

Risk-Adjusted Indicators

There is a big difference between American Mutual Fund performing well and American High-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 American High-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
AFTFX	0.13	0.01	(0.34)	0.01	0.20	(0.17)	0.32	(0.32)	1.29
AHICX	0.15	0.01	(0.31)	(0.02)	0.26	(0.17)	0.32	(0.32)	1.50
AHTFX	0.13	0.02	(0.55)	0.33	0.00	(0.20)	0.31	(0.20)	0.93
BFAFX	0.21	(0.03)	0.00	0.52	0.00	0.00	0.44	(0.53)	1.30
LTXFX	0.09	0.00	(0.51)	0.10	0.12	(0.13)	0.20	(0.19)	0.78

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