American Mutual Correlations

AMFCX Fund  USD 53.54  0.13  0.24%   
The correlation of American Mutual 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 American Mutual moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Mutual Fund 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.

Almost no diversification

The correlation between American Mutual Fund and NYA is 0.94 (i.e., Almost no diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Mutual Fund 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 American Mutual Fund. 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 main economic indicators.
  
The ability to find closely correlated positions to American Mutual could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Mutual 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 American Mutual - 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 American Mutual Fund to buy it.

Moving together with American Mutual Fund

  0.96AMECX Income FundPairCorr
  0.84RNEBX New World FundPairCorr
  1.0AMFFX American MutualPairCorr
  0.93RNCCX American Funds IncomePairCorr
  0.83FPPPX American Funds PresePairCorr
  0.9AMEFX Income FundPairCorr
  0.8RNGGX New Economy FundPairCorr
  0.91RNGFX New Economy FundPairCorr
  0.8RNGHX New Economy FundPairCorr
  0.79RNGBX New Economy FundPairCorr
  0.79RNGAX New Economy FundPairCorr
  0.79RNGEX New Economy FundPairCorr
  0.77AMHIX American High IncomePairCorr
  0.97FPTPX American Funds ConsePairCorr

Related Correlations Analysis

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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   
OGEAXMSTSX
ABHYXLBHIX
XTWOLBHIX
OGEAXLBHIX
LBHIXMSTSX
XTWOMSTSX
  
High negative correlations   
MTWOBRRAY
MTWOMSTSX
MTWOVIASP
VIASP444859BR2
MSTSX444859BR2
BRRAY444859BR2

Risk-Adjusted Indicators

There is a big difference between American Mutual Fund performing well and American Mutual 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 American Mutual'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 DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
444859BR2  0.70  0.13  0.06  0.49  1.06 
 1.73 
 8.02 
AQUI  0.00  0.00  0.00  0.00  0.00 
 0.00 
 0.00 
BRRAY  1.16  0.30  0.00 (1.61) 0.00 
 2.12 
 35.79 
MSTSX  0.44  0.03  0.03  0.10  0.51 
 1.03 
 3.20 
LBHIX  0.18  0.01 (0.17) 0.34  0.09 
 0.48 
 0.98 
ABHYX  0.14  0.02 (0.17) 1.13  0.10 
 0.34 
 1.14 
VIASP  1.35  0.36  0.13 (3.49) 1.77 
 3.96 
 13.41 
XTWO  0.10  0.00 (0.39)(0.01) 0.12 
 0.19 
 1.31 
OGEAX  0.57  0.00  0.01  0.07  0.57 
 1.18 
 3.69 
MTWO  8.37  1.41  0.03 (0.32) 11.09 
 13.33 
 204.17 

Be your own money manager

Our tools can tell you how much better you can do entering a position in American Mutual 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 American Mutual Fund?

The danger of trading American Mutual Fund 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 American Mutual 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 American Mutual. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile American Mutual 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 American Mutual Fund. 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 main economic indicators.
Note that the American Mutual information on this page should be used as a complementary analysis to other American Mutual'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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Please note, there is a significant difference between American Mutual's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Mutual is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Mutual'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.