American Funds Correlations

CGGFX Fund  USD 25.50  0.02  0.08%   
The current 90-days correlation between American Funds Global and Voya Target Retirement is 0.01 (i.e., Significant 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

Good diversification

The correlation between American Funds Global and DJI is -0.09 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Global 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 American Funds Global. 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 census.

Moving together with American Mutual Fund

  0.67AMECX Income FundPairCorr
  0.67RNEBX New World FundPairCorr
  0.65AMFCX American MutualPairCorr
  0.65AMFFX American MutualPairCorr
  0.72RNCCX American Funds IncomePairCorr
  0.66AMEFX Income FundPairCorr
  1.0RNGGX New Economy FundPairCorr
  1.0RNGFX New Economy FundPairCorr
  0.65RNGHX New Economy FundPairCorr
  1.0RNGBX New Economy FundPairCorr
  1.0RNGAX New Economy FundPairCorr
  1.0RNGEX New Economy FundPairCorr
  1.0RNGCX New Economy FundPairCorr
  0.68AMHIX American High IncomePairCorr
  0.71TEAFX Tax Exempt BondPairCorr
  0.65FPTPX American Funds ConsePairCorr
  1.0CDJAX American Funds CollegePairCorr
  1.0AMPCX Amcap Fund ClassPairCorr
  0.64AMPFX Amcap Fund ClassPairCorr
  1.0RNPBX New PerspectivePairCorr
  1.0RNPAX New PerspectivePairCorr
  1.0RNPHX New PerspectivePairCorr
  0.74RNPGX New PerspectivePairCorr
  1.0RNPCX New PerspectivePairCorr
  1.0RNPFX New PerspectivePairCorr
  1.0RNPEX New PerspectivePairCorr
  0.65AMRMX American MutualPairCorr
  0.73AMRFX American MutualPairCorr
  0.97TEPCX American Funds TaxPairCorr
  0.65TEPFX American Funds TaxPairCorr
  1.0RNWEX New World FundPairCorr
  1.0RNWHX New World FundPairCorr
  0.75RNWGX New World FundPairCorr
  1.0RNWBX 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.