American Funds Correlations

ANCFX Fund  USD 85.25  0.15  0.18%   
The current 90-days correlation between American Funds Funda and American Funds Conservative is 0.76 (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

Modest diversification

The correlation between American Funds Fundamental and DJI is 0.21 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental 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 Funds Fundamental. 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

  0.84AMECX Income FundPairCorr
  0.93RNEBX New World FundPairCorr
  0.91AMFCX American MutualPairCorr
  0.91AMFFX American MutualPairCorr
  0.82RNCCX American Funds IncomePairCorr
  0.84AMEFX Income FundPairCorr
  0.96RNGGX New Economy FundPairCorr
  0.96RNGFX New Economy FundPairCorr
  0.96RNGHX New Economy FundPairCorr
  0.95RNGBX New Economy FundPairCorr
  0.95RNGAX New Economy FundPairCorr
  0.96RNGEX New Economy FundPairCorr
  0.96RNGCX New Economy FundPairCorr
  0.74AMHIX American High IncomePairCorr
  0.77TEBCX Tax Exempt BondPairCorr
  0.75TECCX Tax Exempt FundPairCorr
  0.73TEAFX Tax Exempt BondPairCorr
  0.8FPTPX American Funds ConsePairCorr
  0.72TECFX Tax Exempt FundPairCorr
  0.7TEFEX Tax Exempt FundPairCorr
  0.96RNNEX New Economy FundPairCorr
  0.79CDJAX American Funds CollegePairCorr
  0.96AMPCX Amcap Fund ClassPairCorr
  0.96AMPFX Amcap Fund ClassPairCorr
  0.93RNPBX New PerspectivePairCorr
  0.93RNPAX New PerspectivePairCorr
  0.92RNPHX New PerspectivePairCorr
  0.91RNPGX New PerspectivePairCorr
  0.92RNPCX New PerspectivePairCorr
  0.91RNPFX New PerspectivePairCorr
  0.91AMRMX American MutualPairCorr
  0.91AMRFX American MutualPairCorr
  0.69AMUSX Us Government SecuritiesPairCorr
  0.93RNWFX New World FundPairCorr
  0.93RNWEX New World FundPairCorr
  0.93RNWHX New World FundPairCorr
  0.93RNWGX New World FundPairCorr

Related Correlations Analysis

Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

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   
TLSHXBICPX
PIIIXTLSHX
PGFCXFPTPX
PGFCXBICPX
BICPXFPTPX
TLSHXFPTPX
  
High negative correlations   
SRDAXFPTPX
SRDAXPGFCX
SRDAXPIIIX
SRDAXBICPX
SRDAXTLSHX

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.