American Funds Correlations

NYACX Fund  USD 10.27  0.02  0.19%   
The current 90-days correlation between American Funds Tax and Volumetric Fund Volumetric is -0.31 (i.e., Very good 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 good diversification

The correlation between American Funds Tax Exempt and DJI is -0.33 (i.e., Very good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Tax Exempt and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in American Funds Tax Exempt. 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

  0.61FPPPX American Funds PresePairCorr
  0.98AMHIX American High IncomePairCorr
  0.91TEBCX Tax Exempt BondPairCorr
  0.97TECCX Tax Exempt FundPairCorr
  0.99TEAFX Tax Exempt BondPairCorr
  0.99TECFX Tax Exempt FundPairCorr
  0.99TEFEX Tax Exempt FundPairCorr
  0.78TEPCX American Funds TaxPairCorr
  0.93TEPAX American Funds TaxPairCorr
  0.82TEPFX American Funds TaxPairCorr

Related Correlations Analysis

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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   
LMUSXVOLMX
TMVAXLMUSX
TMVAXVOLMX
VOLJXTMVAX
VOLJXLMUSX
WRLDXVOLMX
  
High negative correlations   
XMHFXVOLMX
XMHFXLMUSX
XMHFXTMVAX
XMHFXWRLDX
VOLJXXMHFX

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.