Capital World Correlations

WFBFX Fund

USD 16.18 0.08 0.50%

The current 90-days correlation between Capital World Bond and Tortoise Energy Independence is -0.31 (i.e., Very good diversification). The correlation of Capital World 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 World Correlation With Market

Good diversification

The correlation between Capital World Bond and DJI is -0.18 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital World Bond and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Capital World Bond. 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 census.

Moving together with Capital Mutual Fund

0.95	FPPPX	American Funds Prese	Pair Corr
0.65	TEBCX	Tax Exempt Bond	Pair Corr
0.71	TECCX	Tax Exempt Fund	Pair Corr
0.65	TECFX	Tax Exempt Fund	Pair Corr
0.62	TEFEX	Tax Exempt Fund	Pair Corr
0.98	AMUSX	Us Government Securities	Pair Corr
0.7	TEPCX	American Funds Tax	Pair Corr

Moving against Capital Mutual Fund

0.65	RNGGX	New Economy Fund	Pair Corr
0.65	RNGFX	New Economy Fund	Pair Corr
0.65	RNGHX	New Economy Fund	Pair Corr
0.65	RNGEX	New Economy Fund	Pair Corr
0.65	RNNEX	New Economy Fund	Pair Corr
0.65	AMPFX	Amcap Fund Class	Pair Corr
0.64	RNGBX	New Economy Fund	Pair Corr
0.64	RNGAX	New Economy Fund	Pair Corr
0.64	AMPCX	Amcap Fund Class	Pair Corr
0.53	AMFFX	American Mutual	Pair Corr
0.51	AMFCX	American Mutual	Pair Corr
0.49	CDJAX	American Funds College	Pair Corr
0.45	AMEFX	Income Fund	Pair Corr
0.44	AMECX	Income Fund	Pair Corr
0.38	RNPHX	New Perspective	Pair Corr
0.38	RNPGX	New Perspective	Pair Corr
0.36	RNPCX	New Perspective	Pair Corr
0.35	RNPBX	New Perspective	Pair Corr
0.35	RNPAX	New Perspective	Pair Corr
0.68	ANCFX	American Funds Funda	Pair Corr
0.65	ANEFX	New Economy Fund	Pair Corr
0.65	ANFFX	New Economy Fund	Pair Corr
0.64	ANFCX	New Economy Fund	Pair Corr
0.53	AMRMX	American Mutual	Pair Corr
0.53	AMRFX	American Mutual	Pair Corr
0.38	RNPFX	New Perspective	Pair Corr
0.37	RNPEX	New Perspective	Pair Corr
0.37	NPFFX	New Perspective	Pair Corr
0.35	NPFCX	New Perspective	Pair Corr

Related Correlations Analysis

	XNDPX	FRNRX	SNPIX	FIKAX	ENPSX
XNDPX		0.8	-0.96	0.87	0.96	XNDPX
FRNRX	0.8		-0.89	0.93	0.87	FRNRX
SNPIX	-0.96	-0.89		-0.96	-1.0	SNPIX
FIKAX	0.87	0.93	-0.96		0.96	FIKAX
ENPSX	0.96	0.87	-1.0	0.96		ENPSX
	XNDPX	FRNRX	SNPIX	FIKAX	ENPSX

Click cells to compare fundamentals

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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

ENPSX	+ 0.96	XNDPX
ENPSX	+ 0.96	FIKAX
FIKAX	+ 0.93	FRNRX
FIKAX	+ 0.87	XNDPX
ENPSX	+ 0.87	FRNRX
FRNRX	+ 0.8	XNDPX

High negative correlations

ENPSX	- 1.0	SNPIX
FIKAX	- 0.96	SNPIX
SNPIX	- 0.96	XNDPX
SNPIX	- 0.89	FRNRX

Risk-Adjusted Indicators

There is a big difference between Capital Mutual Fund performing well and Capital World 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 World'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
XNDPX	0.91	0.10	0.04	0.28	1.12	(0.94)	1.83	(2.38)	6.62
FRNRX	0.75	(0.04)	(0.07)	0.07	1.07	(0.74)	1.58	(1.79)	4.33
SNPIX	0.90	0.00	0.00	0.13	0.00	0.00	2.11	(1.71)	6.81
FIKAX	0.94	(0.04)	(0.05)	0.07	1.33	(0.90)	2.07	(2.13)	5.82
ENPSX	1.36	0.01	0.00	0.14	1.91	(1.33)	2.58	(3.15)	8.91

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