American Funds Correlations

FCKTX Fund  USD 18.43  0.04  0.22%   
The current 90-days correlation between American Funds 2060 and Mid Cap Growth is 0.22 (i.e., Modest 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 2060 and DJI is 0.32 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds 2060 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 2060. 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

  0.7AMECX Income FundPairCorr
  0.65RNEBX New World FundPairCorr
  0.69AMFCX American MutualPairCorr
  0.7AMFFX American MutualPairCorr
  0.92RNCCX American Funds IncomePairCorr
  0.72AMEFX Income FundPairCorr
  0.77RNGGX New Economy FundPairCorr
  0.79RNGFX New Economy FundPairCorr
  0.79RNGHX New Economy FundPairCorr
  0.74RNGBX New Economy FundPairCorr
  0.74RNGAX New Economy FundPairCorr
  0.78RNGEX New Economy FundPairCorr
  0.76RNGCX New Economy FundPairCorr
  0.65AMHIX American High IncomePairCorr
  0.64TEBCX Tax Exempt BondPairCorr
  0.63TECCX Tax Exempt FundPairCorr
  0.64TEAFX Tax Exempt BondPairCorr
  0.93FPTPX American Funds ConsePairCorr
  0.61TECFX Tax Exempt FundPairCorr
  0.62TEFEX Tax Exempt FundPairCorr
  0.77RNNEX New Economy FundPairCorr
  0.97CDJAX American Funds CollegePairCorr
  0.84AMPCX Amcap Fund ClassPairCorr
  0.88AMPFX Amcap Fund ClassPairCorr
  0.89RNPBX New PerspectivePairCorr
  0.89RNPAX New PerspectivePairCorr
  0.91RNPHX New PerspectivePairCorr
  0.91RNPGX New PerspectivePairCorr
  0.9RNPCX New PerspectivePairCorr
  0.91RNPFX New PerspectivePairCorr
  0.91RNPEX New PerspectivePairCorr
  0.69AMRMX American MutualPairCorr
  0.69AMRFX American MutualPairCorr
  0.83RNRPX American Funds RetirementPairCorr
  0.67AMUSX Us Government SecuritiesPairCorr
  0.65TEPCX American Funds TaxPairCorr
  0.61TEPAX American Funds TaxPairCorr
  0.66RNWFX New World FundPairCorr

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.