Income Fund Correlations

AMEFX Fund  USD 24.11  0.08  0.33%   
The correlation of Income Fund 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 Income Fund moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Income Fund Of 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.

Average diversification

The correlation between Income Fund Of and NYA is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Income Fund Of and NYA in the same portfolio, assuming nothing else is changed.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Income Fund Of. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in census.
  
The ability to find closely correlated positions to Income Fund could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Income Fund 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 Income Fund - 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 Income Fund Of to buy it.

Moving together with Income Mutual Fund

  0.94AMECX Income FundPairCorr
  0.89RNEBX New World FundPairCorr
  0.95AMFCX American MutualPairCorr
  0.96AMFFX American MutualPairCorr
  0.96RNCCX American Funds IncomePairCorr
  0.8FPPPX American Funds PresePairCorr
  0.85RNGGX New Economy FundPairCorr
  0.69AMHIX American High IncomePairCorr
  0.9FPTPX American Funds ConsePairCorr
  0.9RNPAX New PerspectivePairCorr
  0.9AMRMX American MutualPairCorr
  0.96AMRFX American MutualPairCorr
  0.85CDWEX American Funds DevelopingPairCorr
  0.94ANCFX American Funds FundaPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Income Mutual Fund performing well and Income Fund 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 Income Fund'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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Income Fund without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Already Invested in Income Fund Of?

The danger of trading Income Fund Of is mainly related to its market volatility and Mutual Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Income Fund is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Income Fund. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Income Fund is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Income Fund Of. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in census.
Note that the Income Fund information on this page should be used as a complementary analysis to other Income Fund'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 Transaction History module to view history of all your transactions and understand their impact on performance.
Please note, there is a significant difference between Income Fund's value and its price as these two are different measures arrived at by different means. Investors typically determine if Income Fund is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Income Fund's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.