Amcap Fund Correlations

RAEBX Fund  USD 41.88  0.29  0.69%   
The current 90-days correlation between Amcap Fund Class and Goldman Sachs Emerging is 0.14 (i.e., Average diversification). The correlation of Amcap Fund 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.

Amcap Fund Correlation With Market

AmcapDowDiversified AwayAmcapDowDiversified Away100%

Very weak diversification

The correlation between Amcap Fund Class and DJI is 0.58 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Amcap Fund Class and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Amcap Fund Class. 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 bureau of labor statistics.

Moving together with Amcap Mutual Fund

  0.8AMECX Income FundPairCorr
  0.89RNEBX New World FundPairCorr
  0.9AMFCX American MutualPairCorr
  0.88AMFFX American MutualPairCorr
  0.76RNCCX American Funds IncomePairCorr
  0.76AMEFX Income FundPairCorr
  0.99RNGGX New Economy FundPairCorr
  0.99RNGFX New Economy FundPairCorr
  0.99RNGHX New Economy FundPairCorr
  0.98RNGBX New Economy FundPairCorr
  0.98RNGAX New Economy FundPairCorr
  0.99RNGCX New Economy FundPairCorr
  0.81AMHIX American High IncomePairCorr
  0.83TEBCX Tax Exempt BondPairCorr
  0.79TECCX Tax Exempt FundPairCorr
  0.8TEAFX Tax Exempt BondPairCorr
  0.69FPTPX American Funds ConsePairCorr
  0.77TECFX Tax Exempt FundPairCorr
  0.76TEFEX Tax Exempt FundPairCorr
  0.99RNNEX New Economy FundPairCorr
  0.79CDJAX American Funds CollegePairCorr
  0.99AMPCX Amcap Fund ClassPairCorr
  1.0AMPFX Amcap Fund ClassPairCorr
  0.91RNPAX New PerspectivePairCorr
  0.89RNPHX New PerspectivePairCorr
  0.89RNPGX New PerspectivePairCorr
  0.89RNPEX New PerspectivePairCorr
  0.9AMRMX American MutualPairCorr
  0.9AMRFX American MutualPairCorr
  0.73AMUSX Us Government SecuritiesPairCorr
  0.62TEPCX American Funds TaxPairCorr
  0.89RNWFX New World FundPairCorr
  0.89RNWHX New World FundPairCorr
  0.89RNWGX New World FundPairCorr
  0.9RNWBX New World FundPairCorr
  0.9RNWAX New World FundPairCorr
  0.89RNWCX New World FundPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Amcap Mutual Fund performing well and Amcap Fund 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 Amcap Fund's 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.