American Funds Risk Adjusted Performance
| AFIFX Fund | | | USD 102.62 0.92 0.90% |
Risk-Adjusted Performance (RAP) measures the return an equity would have generated if it carried the same total risk (standard deviation) as the market. Derived from the Sharpe Ratio, RAP is expressed in percentage terms, making direct comparison across assets with different volatility profiles straightforward. Below is American Funds's current Risk Adjusted Performance with peer comparisons and related risk metrics.
Current Risk Adjusted Performance Value
American Funds carries a Risk Adjusted Performance of 0.1034, consistent with positive but modest risk-adjusted return. American Funds has produced a positive return relative to risk, though the margin is limited.
RAP | = | (ER[a] - RFR) * STD[b])/STD[b]RFR |
| = | 0.1034 | |
Risk Adjusted Performance Peers Comparison
American Funds's Risk Adjusted Performance of 0.1034 falls above the 0.08 peer average. Values range from 0.0332 (New Perspective Fund) to 0.104 (American Funds Fundamental), with moderate dispersion across the group. American Funds's risk-adjusted return exceeds the peer average, indicating more efficient compensation for risk taken.
Risk Adjusted Performance Relative To Other Indicators
The chart below plots Risk Adjusted Performance against Maximum Drawdown for American Funds and its peers. Each point represents one equity — position along the horizontal axis shows Risk Adjusted Performance while the vertical axis shows Maximum Drawdown. Equities that cluster in different quadrants carry distinct risk-return profiles. Use the dropdowns to swap in other indicators for either axis.
American Funds's Maximum Drawdown of
4.75 runs about
45.90 times its Risk Adjusted Performance of
0.10 . This indicates Maximum Drawdown substantially exceeds Risk Adjusted Performance for American Funds.
Methodology, Assumptions & Data Sources
American Funds has a current Risk Adjusted Performance reading of 0.1034. The Risk Adjusted Performance for American Funds is produced by transforming raw price history into a standardized measure according to the indicator's defined methodology. The underlying data comes from exchange-reported daily closes with corporate action adjustments applied where relevant. American Funds operates in the large blend funds sector, which may exhibit distinct volatility and momentum characteristics relative to the broader market. Results are based on historical returns and do not predict future performance. This indicator is provided for informational purposes.
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