Capital Income Correlations

CAIBX Fund  USD 76.79  0.14  0.18%   
The current 90-days correlation between Capital Income Builder and Boston Partners Longshort is -0.02 (i.e., Good 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

Good diversification

The correlation between Capital Income Builder and DJI is -0.04 (i.e., Good 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 Trending Equities 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 bureau of labor statistics.

Moving together with Capital Mutual Fund

  0.99RNEBX New World FundPairCorr
  0.66AMFCX American MutualPairCorr
  0.66AMFFX American MutualPairCorr
  0.99AMEFX Income FundPairCorr
  0.85RNGGX New Economy FundPairCorr
  0.74RNGFX New Economy FundPairCorr
  0.98RNGHX New Economy FundPairCorr
  0.73RNGBX New Economy FundPairCorr
  0.85RNGAX New Economy FundPairCorr
  0.74RNGEX New Economy FundPairCorr
  0.85RNGCX New Economy FundPairCorr
  0.62FPTPX American Funds ConsePairCorr
  0.73RNNEX New Economy FundPairCorr
  0.85CDJAX American Funds CollegePairCorr
  0.71AMPCX Amcap Fund ClassPairCorr
  0.84AMPFX Amcap Fund ClassPairCorr
  0.71RNPBX New PerspectivePairCorr
  0.83RNPAX New PerspectivePairCorr
  0.83RNPHX New PerspectivePairCorr
  0.83RNPGX New PerspectivePairCorr
  0.83RNPCX New PerspectivePairCorr
  0.71RNPFX New PerspectivePairCorr
  0.71RNPEX New PerspectivePairCorr
  0.99AMRMX American MutualPairCorr
  0.85AMRFX American MutualPairCorr
  0.75RNRPX American Funds RetirementPairCorr
  0.86TEPCX American Funds TaxPairCorr
  0.62TEPAX American Funds TaxPairCorr
  0.61TEPFX American Funds TaxPairCorr
  0.74RNWFX 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.