Capital World Correlations

WFBFX Fund

USD 16.09 0.05 0.31%

The current 90-days correlation between Capital World Bond and Pioneer High Income is 0.54 (i.e., Very weak 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 -0.14 (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

0.82	AMECX	Income Fund	Pair Corr
0.78	RNEBX	New World Fund	Pair Corr
0.81	AMFCX	American Mutual	Pair Corr
0.82	AMFFX	American Mutual	Pair Corr
0.85	RNCCX	American Funds Income	Pair Corr
0.88	AMEFX	Income Fund	Pair Corr
0.94	AMHIX	American High Income	Pair Corr
0.91	TEBCX	Tax Exempt Bond	Pair Corr
0.9	TECCX	Tax Exempt Fund	Pair Corr
0.92	TEAFX	Tax Exempt Bond	Pair Corr
0.9	FPTPX	American Funds Conse	Pair Corr
0.9	TECFX	Tax Exempt Fund	Pair Corr
0.91	TEFEX	Tax Exempt Fund	Pair Corr
0.64	CDJAX	American Funds College	Pair Corr
0.7	RNPBX	New Perspective	Pair Corr
0.7	RNPAX	New Perspective	Pair Corr
0.71	RNPHX	New Perspective	Pair Corr
0.71	RNPGX	New Perspective	Pair Corr
0.71	RNPCX	New Perspective	Pair Corr
0.71	RNPFX	New Perspective	Pair Corr
0.71	RNPEX	New Perspective	Pair Corr
0.76	AMRMX	American Mutual	Pair Corr
0.82	AMRFX	American Mutual	Pair Corr
0.75	RNRPX	American Funds Retirement	Pair Corr
0.88	AMUSX	Us Government Securities	Pair Corr
0.88	TEPCX	American Funds Tax	Pair Corr
0.84	TEPAX	American Funds Tax	Pair Corr
0.88	TEPFX	American Funds Tax	Pair Corr
0.79	RNWFX	New World Fund	Pair Corr

Related Correlations Analysis

	HIMYX	GHVIX	AHYMX	AGDZX	BXHCX	RYIHX	ARTFX
HIMYX		0.75	0.96	0.71	0.77	-0.72	0.65	HIMYX
GHVIX	0.75		0.82	0.94	0.96	-0.57	0.92	GHVIX
AHYMX	0.96	0.82		0.74	0.82	-0.77	0.69	AHYMX
AGDZX	0.71	0.94	0.74		0.97	-0.36	0.99	AGDZX
BXHCX	0.77	0.96	0.82	0.97		-0.53	0.96	BXHCX
RYIHX	-0.72	-0.57	-0.77	-0.36	-0.53		-0.31	RYIHX
ARTFX	0.65	0.92	0.69	0.99	0.96	-0.31		ARTFX
	HIMYX	GHVIX	AHYMX	AGDZX	BXHCX	RYIHX	ARTFX

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

ARTFX	+ 0.99	AGDZX
BXHCX	+ 0.97	AGDZX
AHYMX	+ 0.96	HIMYX
BXHCX	+ 0.96	GHVIX
ARTFX	+ 0.96	BXHCX
AGDZX	+ 0.94	GHVIX

High negative correlations

RYIHX	- 0.77	AHYMX
RYIHX	- 0.72	HIMYX
RYIHX	- 0.57	GHVIX
RYIHX	- 0.53	BXHCX
RYIHX	- 0.36	AGDZX
ARTFX	- 0.31	RYIHX

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
HIMYX	0.17	0.02	0.23	2.04	0.14	(0.25)	0.49	(0.33)	1.31
GHVIX	0.14	0.01	0.38	(0.46)	0.08	(0.17)	0.24	(0.24)	0.84
AHYMX	0.12	0.00	0.32	(0.24)	0.07	(0.17)	0.22	(0.22)	0.98
AGDZX	0.14	0.02	0.39	(0.76)	0.00	(0.26)	0.57	(0.29)	1.15
BXHCX	0.13	0.01	0.35	(0.41)	0.00	(0.20)	0.49	(0.25)	1.12
RYIHX	0.23	0.00	0.16	(0.10)	0.31	(0.27)	0.39	(0.48)	2.36
ARTFX	0.11	0.01	0.42	(1.56)	0.00	(0.20)	0.44	(0.22)	1.22

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