American Funds Correlations

NGCRX Fund  USD 11.72  0.02  0.17%   
The current 90-days correlation between American Funds Retirement and The National Tax Free is -0.05 (i.e., Good 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

Poor diversification

The correlation between American Funds Retirement and DJI is 0.64 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Retirement and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in American Funds Retirement. 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 metropolitan statistical area.

Moving together with American Mutual Fund

  0.65AMECX Income FundPairCorr
  0.65RNEBX New World FundPairCorr
  0.9RNCCX American Funds IncomePairCorr
  0.72FPPPX American Funds PresePairCorr
  0.65AMEFX Income FundPairCorr
  0.62AMHIX American High IncomePairCorr
  0.69TECCX Tax Exempt FundPairCorr
  0.62TEAFX Tax Exempt BondPairCorr
  0.75FPTPX American Funds ConsePairCorr
  0.66TEFEX Tax Exempt FundPairCorr
  0.61AMRMX American MutualPairCorr
  0.95RNRPX American Funds RetirementPairCorr
  0.87AMUSX Us Government SecuritiesPairCorr
  0.72TEPCX American Funds TaxPairCorr
  0.65TEPAX American Funds TaxPairCorr
  0.65TEPFX American Funds TaxPairCorr
  0.65RNWFX New World FundPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
BBINXCFNLX
USCBXBBINX
USCBXCFNLX
XDLYXCFNLX
XDLYXBBINX
USCBXXDLYX
  
High negative correlations   
USCBXFCOLDX
FCOLDXBBINX
FCOLDXCFNLX

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.