New Economy Correlations

RNGAX Fund  USD 54.43  0.22  0.40%   
The current 90-days correlation between New Economy Fund and Income Fund Of is 0.14 (i.e., Average diversification). The correlation of New Economy 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.

New Economy Correlation With Market

Poor diversification

The correlation between New Economy Fund and DJI is 0.62 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding New Economy Fund 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 New Economy Fund. 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 nation.

Moving together with New Mutual Fund

  0.79AMECX Income FundPairCorr
  0.74RNEBX New World FundPairCorr
  0.87AMFCX American MutualPairCorr
  0.88AMFFX American MutualPairCorr
  0.89RNCCX American Funds IncomePairCorr
  0.9FPPPX American Funds PresePairCorr
  0.71AMEFX Income FundPairCorr
  0.95RNGFX New Economy FundPairCorr
  0.95RNGHX New Economy FundPairCorr
  0.95RNGBX New Economy FundPairCorr
  0.95RNGEX New Economy FundPairCorr
  1.0RNGCX New Economy FundPairCorr
  0.86AMHIX American High IncomePairCorr
  0.72TEBCX Tax Exempt BondPairCorr
  0.74TECCX Tax Exempt FundPairCorr
  0.76TEAFX Tax Exempt BondPairCorr
  0.9FPTPX American Funds ConsePairCorr
  0.77TECFX Tax Exempt FundPairCorr
  0.77TEFEX Tax Exempt FundPairCorr
  0.95RNNEX New Economy FundPairCorr
  0.97CDJAX American Funds CollegePairCorr
  0.98AMPCX Amcap Fund ClassPairCorr
  0.93RNPAX New PerspectivePairCorr
  0.95RNPHX New PerspectivePairCorr
  0.95RNPGX New PerspectivePairCorr
  0.95RNPFX New PerspectivePairCorr
  0.93RNPEX New PerspectivePairCorr
  0.89AMRMX American MutualPairCorr
  0.81AMUSX Us Government SecuritiesPairCorr
  0.82RNWEX New World FundPairCorr
  0.82RNWHX New World FundPairCorr
  0.82RNWGX New World FundPairCorr
  0.82RNWAX New World FundPairCorr
  0.82RNWCX New World FundPairCorr
  0.82ANBEX American Funds StrategicPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

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