American Funds Correlations

FPTPX Fund  USD 13.11  0.02  0.15%   
The current 90-days correlation between American Funds Conse and Income Fund Of is 0.23 (i.e., Modest diversification). The correlation of American Funds 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 correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

American Funds Correlation With Market

Poor diversification

The correlation between American Funds Conservative and DJI is 0.79 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Conservative and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in American Funds Conservative. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in american community survey.

Moving together with American Mutual Fund

  0.89AMECX Income FundPairCorr
  0.88RNEBX New World FundPairCorr
  0.91AMFCX American MutualPairCorr
  0.91AMFFX American MutualPairCorr
  0.94RNCCX American Funds IncomePairCorr
  0.89FPPPX American Funds PresePairCorr
  0.9AMEFX Income FundPairCorr
  0.9RNGFX New Economy FundPairCorr
  0.9RNGHX New Economy FundPairCorr
  0.9RNGBX New Economy FundPairCorr
  0.9RNGAX New Economy FundPairCorr
  0.9RNGEX New Economy FundPairCorr
  0.9RNGCX New Economy FundPairCorr
  0.85AMHIX American High IncomePairCorr
  0.69TEBCX Tax Exempt BondPairCorr
  0.74TECCX Tax Exempt FundPairCorr
  0.76TEAFX Tax Exempt BondPairCorr
  0.77TECFX Tax Exempt FundPairCorr
  0.77TEFEX Tax Exempt FundPairCorr
  0.9RNNEX New Economy FundPairCorr
  0.96CDJAX American Funds CollegePairCorr
  0.89AMPCX Amcap Fund ClassPairCorr
  0.89AMPFX Amcap Fund ClassPairCorr
  0.94RNPBX New PerspectivePairCorr
  0.9RNPAX New PerspectivePairCorr
  0.96RNPHX New PerspectivePairCorr
  0.96RNPGX New PerspectivePairCorr
  0.9RNPCX New PerspectivePairCorr
  0.96RNPFX New PerspectivePairCorr
  0.9RNPEX New PerspectivePairCorr
  0.98AMRMX American MutualPairCorr
  0.85AMUSX Us Government SecuritiesPairCorr
  0.7TEPAX American Funds TaxPairCorr
  0.66TEPFX American Funds TaxPairCorr
  0.9RNWFX New World FundPairCorr
  0.9RNWEX New World FundPairCorr
  0.9RNWHX New World FundPairCorr
  0.9RNWGX New World FundPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between American Mutual Fund performing well and American Funds 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 Funds' 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
AMECX  0.38  0.02  0.03  0.17  0.52 
 0.75 
 2.09 
RNEBX  0.48  0.03  0.04  0.15  0.63 
 1.04 
 2.91 
AMFCX  0.43  0.03  0.05  0.27  0.52 
 0.99 
 2.60 
AMFFX  0.43  0.04  0.06  0.30  0.51 
 1.00 
 2.61 
RNCCX  0.30  0.03  0.05  0.36  0.39 
 0.63 
 2.18 
FPPPX  0.13  0.01  0.02  0.24  0.11 
 0.22 
 0.86 
AMEFX  0.38  0.02  0.03  0.15  0.51 
 0.75 
 2.10 
RNGFX  0.66  0.09  0.11  0.42  0.67 
 1.58 
 3.49 
RNGHX  0.66  0.09  0.10  0.43  0.66 
 1.59 
 3.49 
RNGBX  0.66  0.09  0.10  0.40  0.66 
 1.57 
 3.47