Capital Income Correlations

RIRBX Fund

USD 71.13 0.40 0.57%

The current 90-days correlation between Capital Income Builder and Icon Information Technology is 0.38 (i.e., Weak diversification). The correlation of Capital Income 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.

Capital Income Correlation With Market

Modest diversification

The correlation between Capital Income Builder and DJI is 0.27 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder 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 Capital Income Builder. 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 Capital Mutual Fund

0.94	AMECX	Income Fund	Pair Corr
0.93	RNEBX	New World Fund	Pair Corr
0.95	AMFCX	American Mutual	Pair Corr
0.95	AMFFX	American Mutual	Pair Corr
0.9	RNCCX	American Funds Income	Pair Corr
0.9	RNGGX	New Economy Fund	Pair Corr
0.92	RNGFX	New Economy Fund	Pair Corr
0.92	RNGHX	New Economy Fund	Pair Corr
0.92	RNGBX	New Economy Fund	Pair Corr
0.92	RNGAX	New Economy Fund	Pair Corr
0.92	RNGEX	New Economy Fund	Pair Corr
0.94	AMRMX	American Mutual	Pair Corr
0.93	RNWFX	New World Fund	Pair Corr
0.91	ANCFX	American Funds Funda	Pair Corr
0.92	ANFCX	New Economy Fund	Pair Corr
0.88	ANWPX	New Perspective	Pair Corr
0.91	BALCX	American Balanced	Pair Corr
0.95	CWGIX	Capital World Growth	Pair Corr
0.93	WSHFX	Washington Mutual	Pair Corr
0.95	CWICX	Capital World Growth	Pair Corr
0.93	CWMAX	Washington Mutual	Pair Corr
0.73	GVTFX	Us Government Securities	Pair Corr
0.92	WBFFX	Capital World Bond	Pair Corr
0.83	FAFGX	American Funds	Pair Corr
0.85	FAX	Aberdeen Asia Pacific	Pair Corr
1.0	CFIHX	Capital Income Builder	Pair Corr
0.87	TYIFX	American Funds Tax	Pair Corr
0.77	GFAFX	Growth Fund	Pair Corr
0.84	SCWFX	Smallcap World	Pair Corr
0.83	CGFFX	Growth Fund	Pair Corr
0.69	CGPEX	American Funds Growth	Pair Corr
0.75	CGTFX	Us Government Securities	Pair Corr

Related Correlations Analysis

	ICTTX	DTEYX	BSTSX	USTCX	FIKHX	CTHCX	BGSIX
ICTTX		0.45	0.43	-0.08	0.17	-0.16	0.39	ICTTX
DTEYX	0.45		0.87	0.77	0.56	0.53	0.87	DTEYX
BSTSX	0.43	0.87		0.69	0.67	0.47	1.0	BSTSX
USTCX	-0.08	0.77	0.69		0.45	0.8	0.73	USTCX
FIKHX	0.17	0.56	0.67	0.45		0.31	0.66	FIKHX
CTHCX	-0.16	0.53	0.47	0.8	0.31		0.51	CTHCX
BGSIX	0.39	0.87	1.0	0.73	0.66	0.51		BGSIX
	ICTTX	DTEYX	BSTSX	USTCX	FIKHX	CTHCX	BGSIX

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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

BGSIX	+ 1.0	BSTSX
BSTSX	+ 0.87	DTEYX
BGSIX	+ 0.87	DTEYX
CTHCX	+ 0.8	USTCX
USTCX	+ 0.77	DTEYX
BGSIX	+ 0.73	USTCX

High negative correlations

CTHCX	- 0.16	ICTTX
USTCX	- 0.08	ICTTX

Risk-Adjusted Indicators

There is a big difference between Capital Mutual Fund performing well and Capital Income 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 Capital Income'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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ICTTX	0.89	(0.04)	(0.05)	0.01	1.40	(0.90)	1.77	(2.14)	7.69
DTEYX	1.05	0.03	(0.01)	0.17	1.32	(1.13)	1.98	(2.49)	6.39
BSTSX	1.26	(0.01)	(0.03)	0.06	2.06	(1.22)	2.40	(3.58)	9.07
USTCX	1.19	0.08	0.03	0.24	1.51	(1.20)	2.71	(2.89)	7.48
FIKHX	1.27	(0.10)	0.00	(0.14)	0.00	0.00	2.12	(3.00)	9.58
CTHCX	1.09	0.06	(0.02)	1.72	1.54	(1.13)	2.02	(2.56)	8.24
BGSIX	1.25	(0.01)	(0.03)	0.07	2.03	(1.22)	2.40	(3.58)	9.08

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