Capital Income Builder Fund Market Value
| CIBFX Fund | USD 66.11 0.46 0.70% |
| Symbol | Capital |
Capital Income 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Capital Income's mutual fund what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Capital Income.
| 03/23/2024 |
| 04/22/2024 |
If you would invest 0.00 in Capital Income on March 23, 2024 and sell it all today you would earn a total of 0.00 from holding Capital Income Builder or generate 0.0% return on investment in Capital Income over 30 days. Capital Income is related to or competes with Income Fund, Capital World, American Balanced, Growth Fund, and American Funds. The fund normally will invest at least 90 percent of its assets in income-producing securities More
Capital Income Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Capital Income's mutual fund current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Capital Income Builder upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.5353 | |||
| Information Ratio | (0.13) | |||
| Maximum Drawdown | 2.63 | |||
| Value At Risk | (0.79) | |||
| Potential Upside | 0.7627 |
Capital Income Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Capital Income's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Capital Income's standard deviation. In reality, there are many statistical measures that can use Capital Income historical prices to predict the future Capital Income's volatility.| Risk Adjusted Performance | 0.0249 | |||
| Jensen Alpha | (0.04) | |||
| Total Risk Alpha | (0.05) | |||
| Sortino Ratio | (0.12) | |||
| Treynor Ratio | 0.0166 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Capital Income's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Capital Me Builder Backtested Returns
We consider Capital Income very steady. Capital Me Builder secures Sharpe Ratio (or Efficiency) of 0.0389, which signifies that the fund had a 0.0389% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Capital Income Builder, which you can use to evaluate the volatility of the entity. Please confirm Capital Income's Mean Deviation of 0.3538, downside deviation of 0.5353, and Risk Adjusted Performance of 0.0249 to double-check if the risk estimate we provide is consistent with the expected return of 0.0193%. The fund shows a Beta (market volatility) of 0.71, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, Capital Income's returns are expected to increase less than the market. However, during the bear market, the loss of holding Capital Income is expected to be smaller as well.
Auto-correlation | 0.34 |
Below average predictability
Capital Income Builder has below average predictability. Overlapping area represents the amount of predictability between Capital Income time series from 23rd of March 2024 to 7th of April 2024 and 7th of April 2024 to 22nd of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Capital Me Builder price movement. The serial correlation of 0.34 indicates that nearly 34.0% of current Capital Income price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.34 | |
| Spearman Rank Test | 0.3 | |
| Residual Average | 0.0 | |
| Price Variance | 0.73 |
Capital Me Builder lagged returns against current returns
Autocorrelation, which is Capital Income mutual fund's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Capital Income's mutual fund expected returns. We can calculate the autocorrelation of Capital Income returns to help us make a trade decision. For example, suppose you find that Capital Income has exhibited high autocorrelation historically, and you observe that the mutual fund is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Capital Income regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Capital Income mutual fund is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Capital Income mutual fund is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Capital Income mutual fund over time.
Current vs Lagged Prices |
| Timeline |
Capital Income Lagged Returns
When evaluating Capital Income's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Capital Income mutual fund have on its future price. Capital Income autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Capital Income autocorrelation shows the relationship between Capital Income mutual fund current value and its past values and can show if there is a momentum factor associated with investing in Capital Income Builder.
Regressed Prices |
| Timeline |
Pair Trading with Capital Income
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Capital Income position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Capital Income will appreciate offsetting losses from the drop in the long position's value.Moving together with Capital Mutual Fund
| 0.98 | AMECX | Income Fund | PairCorr |
| 0.9 | RNEBX | New World Fund | PairCorr |
| 0.96 | AMFCX | American Mutual | PairCorr |
| 0.96 | AMFFX | American Mutual | PairCorr |
| 0.98 | RNCCX | American Funds Me | PairCorr |
The ability to find closely correlated positions to Capital Income could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Capital Income when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Capital Income - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Capital Income Builder to buy it.
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 perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Capital Income moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capital Me Builder moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Capital Income can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Capital Income Correlation, Capital Income Volatility and Capital Income Alpha and Beta module to complement your research on Capital Income. Note that the Capital Me Builder information on this page should be used as a complementary analysis to other Capital Income's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Capital Income technical mutual fund analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, fund market cycles, or different charting patterns.