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Correlation Between American Funds and New Perspective

Analyzing existing cross correlation between American Funds Global Growth Po and New Perspective Fund Class F 1. You can compare the effects of market volatilities on American Funds and New Perspective and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Funds with a short position of New Perspective. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and New Perspective.

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Diversification Opportunities for American Funds and New Perspective

American Funds Global Growth P diversification synergy
0.99
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NEW

No risk reduction

The 3 months correlation between American and NPFFX is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Global Growth P and New Perspective Fund Class F 1 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on New Perspective Fund and American Funds is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Funds Global Growth Po are associated (or correlated) with New Perspective. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Perspective Fund has no effect on the direction of American Funds i.e. American Funds and New Perspective go up and down completely randomly.

Pair Corralation between American Funds and New Perspective

Assuming 30 trading days horizon, American Funds Global Growth Po is expected to under-perform the New Perspective. But the mutual fund apears to be less risky and, when comparing its historical volatility, American Funds Global Growth Po is 1.16 times less risky than New Perspective. The mutual fund trades about -0.06 of its potential returns per unit of risk. The New Perspective Fund Class F 1 is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  4,801  in New Perspective Fund Class F 1 on March 11, 2020 and sell it today you would lose (757.00)  from holding New Perspective Fund Class F 1 or give up 15.77% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

American Funds Global Growth P  vs.  New Perspective Fund Class F 1

 Performance (%) 
    
  Timeline 
American Funds Global 
00

Risk-Adjusted Fund Performance

Over the last 30 days American Funds Global Growth Po has generated negative risk-adjusted returns adding no value to fund investors. Inspite weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in May 2020. The current disturbance may also be a sign of long term up-swing for the fund investors.
New Perspective Fund 
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Risk-Adjusted Fund Performance

Over the last 30 days New Perspective Fund Class F 1 has generated negative risk-adjusted returns adding no value to fund investors. Inspite latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

American Funds and New Perspective Volatility Contrast

 Predicted Return Density 
    
  Returns 
Check out your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.


 
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