American Funds Correlations

CDWCX Fund

USD 10.59 0.03 0.28%

The current 90-days correlation between American Funds Developing and Pear Tree Polaris is 0.57 (i.e., Very weak 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

Weak diversification

The correlation between American Funds Developing and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Developing 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 Developing. 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 main economic indicators.

Moving together with American Mutual Fund

0.61	AMECX	Income Fund	Pair Corr
0.98	RNEBX	New World Fund	Pair Corr
0.72	RNCCX	American Funds Income	Pair Corr
0.61	AMEFX	Income Fund	Pair Corr
0.71	FPTPX	American Funds Conse	Pair Corr
0.72	RNPBX	New Perspective	Pair Corr
0.72	RNPAX	New Perspective	Pair Corr
0.71	RNPHX	New Perspective	Pair Corr
0.7	RNPGX	New Perspective	Pair Corr
0.71	RNPCX	New Perspective	Pair Corr
0.7	RNPFX	New Perspective	Pair Corr
0.71	RNPEX	New Perspective	Pair Corr
0.76	RNRPX	American Funds Retirement	Pair Corr
0.98	RNWFX	New World Fund	Pair Corr

Related Correlations Analysis

	QUSIX	ARTFX	444859BR2	AQUI	BRRAY	LBHIX	MSTSX	ABHYX	VIASP	AAEVX
QUSIX		-0.61	0.63	0.0	-0.11	-0.4	-0.16	0.17	-0.72	-0.57	QUSIX
ARTFX	-0.61		-0.71	0.0	-0.37	0.91	0.76	0.34	0.33	0.84	ARTFX
444859BR2	0.63	-0.71		0.0	0.31	-0.54	-0.45	-0.03	-0.46	-0.65	444859BR2
AQUI	0.0	0.0	0.0		0.0	0.0	0.0	0.0	0.0	0.0	AQUI
BRRAY	-0.11	-0.37	0.31	0.0		-0.35	-0.45	-0.37	0.12	-0.28	BRRAY
LBHIX	-0.4	0.91	-0.54	0.0	-0.35		0.68	0.56	0.26	0.73	LBHIX
MSTSX	-0.16	0.76	-0.45	0.0	-0.45	0.68		0.27	-0.05	0.81	MSTSX
ABHYX	0.17	0.34	-0.03	0.0	-0.37	0.56	0.27		-0.12	0.1	ABHYX
VIASP	-0.72	0.33	-0.46	0.0	0.12	0.26	-0.05	-0.12		0.47	VIASP
AAEVX	-0.57	0.84	-0.65	0.0	-0.28	0.73	0.81	0.1	0.47		AAEVX
	QUSIX	ARTFX	444859BR2	AQUI	BRRAY	LBHIX	MSTSX	ABHYX	VIASP	AAEVX

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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

LBHIX	+ 0.91	ARTFX
AAEVX	+ 0.84	ARTFX
AAEVX	+ 0.81	MSTSX
MSTSX	+ 0.76	ARTFX
AAEVX	+ 0.73	LBHIX
MSTSX	+ 0.68	LBHIX

High negative correlations

VIASP	- 0.72	QUSIX
444859BR2	- 0.71	ARTFX
AAEVX	- 0.65	444859BR2
ARTFX	- 0.61	QUSIX
AAEVX	- 0.57	QUSIX
LBHIX	- 0.54	444859BR2

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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
QUSIX	0.57	(0.19)	0.00	(0.64)	0.00	0.00	1.23	(1.37)	3.87
ARTFX	0.12	0.03	(0.56)	0.58	0.00	(0.21)	0.33	(0.22)	1.01
444859BR2	1.36	(0.08)	0.00	(0.21)	0.00	0.00	5.93	(5.79)	16.62
AQUI	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
BRRAY	1.27	(0.10)	0.00	0.01	0.00	0.00	0.00	(2.98)	34.02
LBHIX	0.12	0.01	(0.39)	0.51	0.00	(0.28)	0.24	(0.24)	0.96
MSTSX	0.49	(0.03)	(0.12)	0.06	0.52	(0.61)	1.21	(1.02)	2.80
ABHYX	0.18	0.03	(0.22)	(0.11)	0.25	(0.24)	0.34	(0.33)	1.91
VIASP	0.75	0.08	(0.03)	(1.87)	1.12	(0.82)	2.28	(1.20)	7.18
AAEVX	0.49	(0.02)	(0.09)	0.08	0.53	(0.59)	0.93	(0.77)	2.76

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