| FEPUX Fund | | | USD 58.09 0.56 0.97% |
The current 90-days correlation between American Funds Europ and Vanguard Institutional Index is 0.62 (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
Very weak diversification
The correlation between American Funds Europacific and DJI is 0.49 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Europacific and DJI in the same portfolio, assuming nothing else is changed.
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Investing Opportunities to better understand how to build diversified portfolios, which includes a position in American Funds Europacific. 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 employment.