American Funds Correlations

FAITX Fund  USD 20.90  0.30  1.42%   
The current 90-days correlation between American Funds 2050 and American Funds 2055 is 1.0 (i.e., No risk reduction). 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 2050 and DJI is 0.37 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds 2050 and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in American Funds 2050. 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 estimate.

Moving together with American Mutual Fund

  0.71AMECX Income FundPairCorr
  0.9RNEBX New World FundPairCorr
  0.83AMFCX American MutualPairCorr
  0.63AMFFX American MutualPairCorr
  0.84RNCCX American Funds IncomePairCorr
  0.71AMEFX Income FundPairCorr
  0.83RNGGX New Economy FundPairCorr
  0.83RNGFX New Economy Fund Potential GrowthPairCorr
  0.83RNGHX New Economy FundPairCorr
  0.8RNGBX New Economy FundPairCorr
  0.8RNGAX New Economy FundPairCorr
  0.83RNGEX New Economy FundPairCorr
  0.82RNGCX New Economy FundPairCorr
  0.72FPTPX American Funds ConsePairCorr
  0.82RNNEX New Economy FundPairCorr
  0.97CDJAX American Funds CollegePairCorr
  0.82AMPCX Amcap Fund ClassPairCorr
  0.86AMPFX Amcap Fund ClassPairCorr
  0.92RNPBX New PerspectivePairCorr
  0.92RNPAX New PerspectivePairCorr
  0.93RNPHX New PerspectivePairCorr
  0.93RNPGX New PerspectivePairCorr
  0.93RNPFX New PerspectivePairCorr
  0.93RNPEX New PerspectivePairCorr
  0.83AMRMX American MutualPairCorr
  0.83AMRFX American MutualPairCorr
  0.63RNRPX American Funds RetirementPairCorr
  0.9RNWFX New World Fund Potential GrowthPairCorr
  0.9RNWEX New World Fund Potential GrowthPairCorr

Related Correlations Analysis

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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.

Trending Assets

FAUTX
American Funds 2040
20.62  -0.27  -1.29 
FATTX
American Funds 2045
21.24  -0.3  -1.39 
FAJTX
American Funds 2055
26.27  -0.4  -1.5 
FAPTX
American Funds 2025
15.36  -0.1  -0.65