Projected Return Density against MarketAssuming 30 trading days horizon, American has beta of 0.49 . This suggests as returns on market go up, American avarage returns are expected to increase less than the benchmark. However during bear market, the loss on holding American Funds Fundamental Invs 529E will be expected to be much smaller as well. Moreover, American Funds Fundamental Invs 529E has alpha of 0.49 implying that it can potentially generate 0.49% excess return over S&P 500 after adjusting for the inherited market risk (beta). Assuming 30 trading days horizon, the coefficient of variation of American is 194.57. The daily returns are destributed with a variance of 0.32 and standard deviation of 0.57. The mean deviation of American Funds Fundamental Invs 529E is currently at 0.43. For similar time horizon, the selected benchmark (S&P 500) has volatility of 0.57
Actual Return VolatilityAmerican Funds Fundamental Invs 529E shows 0.56% volatility of returns over 30 trading days. S&P 500 shows 0.57% volatility of returns over 30 trading days.
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S&P 500 has a standard deviation of returns of 0.57 and is 1.02 times more volatile than American Funds Fundamental Invs 529E. 7% of all equities and portfolios are less risky than American. Compared with the overall equity markets, volatility of historical daily returns of American Funds Fundamental Invs 529E is lower than 7 (%) of all global equities and portfolios over the last 30 days. Use American Funds Fundamental Invs 529E to protect against small markets fluctuations. The fund experiences normal downward trend and little activity. As returns on market increase, American returns are expected to increase less than the market. However during bear market, the loss on holding American will be expected to be smaller as well.
American correlation with market
American Current Risk Indicators
Suggested Divercification Pairs