Capital Income Correlations

RIREX Fund  USD 68.37  0.25  0.36%   
The current 90-days correlation between Capital Income Builder and Income Fund Of is 0.19 (i.e., Average diversification). 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 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.

Capital Income Correlation With Market

Very poor diversification

The correlation between Capital Income Builder and DJI is 0.84 (i.e., Very poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Capital Income Builder. 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 income.

Moving together with Capital Mutual Fund

  0.92AMECX Income FundPairCorr
  0.94RNEBX New World FundPairCorr
  0.91AMFCX American MutualPairCorr
  0.91AMFFX American MutualPairCorr
  0.93RNCCX American Funds IncomePairCorr
  0.85FPPPX American Funds PresePairCorr
  0.99AMEFX Income FundPairCorr
  0.85RNGGX New Economy FundPairCorr
  0.85RNGFX New Economy FundPairCorr
  0.85RNGHX New Economy FundPairCorr
  0.85RNGBX New Economy FundPairCorr
  0.85RNGAX New Economy FundPairCorr
  0.85RNGEX New Economy FundPairCorr
  0.85RNGCX New Economy FundPairCorr
  0.8AMHIX American High IncomePairCorr
  0.67TEBCX Tax Exempt BondPairCorr
  0.7TECCX Tax Exempt FundPairCorr
  0.72TEAFX Tax Exempt BondPairCorr
  0.98FPTPX American Funds ConsePairCorr
  0.73TECFX Tax Exempt FundPairCorr
  0.73TEFEX Tax Exempt FundPairCorr
  0.85RNNEX New Economy FundPairCorr
  0.94CDJAX American Funds CollegePairCorr
  0.83AMPCX Amcap Fund ClassPairCorr
  0.84AMPFX Amcap Fund ClassPairCorr
  0.95RNPBX New PerspectivePairCorr
  0.88RNPAX New PerspectivePairCorr
  0.95RNPHX New PerspectivePairCorr
  0.88RNPGX New PerspectivePairCorr
  0.95RNPCX New PerspectivePairCorr
  0.94RNPFX New PerspectivePairCorr
  0.88RNPEX New PerspectivePairCorr
  0.98AMRMX American MutualPairCorr
  0.98AMRFX American MutualPairCorr
  0.92RNRPX American Funds RetirementPairCorr
  0.78AMUSX Us Government SecuritiesPairCorr
  0.66TEPAX American Funds TaxPairCorr
  0.63TEPFX American Funds TaxPairCorr
  0.94RNWFX New World FundPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

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