American Funds Correlations

RDWGX Fund

USD 10.75 0.02 0.19%

The current 90-days correlation between American Funds Developing and Smallcap World Fund is 0.05 (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

Weak diversification

The correlation between American Funds Developing and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Developing 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 American Funds Developing. 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 price.

Moving together with American Mutual Fund

0.97	RNEBX	New World Fund	Pair Corr
0.68	RNCCX	American Funds Income	Pair Corr
0.67	FPTPX	American Funds Conse	Pair Corr
0.62	RNPBX	New Perspective	Pair Corr
0.62	RNPAX	New Perspective	Pair Corr
0.69	RNPGX	New Perspective	Pair Corr
0.61	RNPCX	New Perspective	Pair Corr
0.69	RNPFX	New Perspective	Pair Corr
0.61	RNPEX	New Perspective	Pair Corr
0.93	RNWFX	New World Fund	Pair Corr
0.93	RNWEX	New World Fund	Pair Corr

Related Correlations Analysis

	SMCWX	CWGIX	ANCFX	CAIBX	ANWPX
SMCWX		0.69	0.65	0.74	0.71	SMCWX
CWGIX	0.69		0.86	0.69	0.98	CWGIX
ANCFX	0.65	0.86		0.37	0.91	ANCFX
CAIBX	0.74	0.69	0.37		0.61	CAIBX
ANWPX	0.71	0.98	0.91	0.61		ANWPX
	SMCWX	CWGIX	ANCFX	CAIBX	ANWPX

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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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
SMCWX	0.63	0.08	(0.06)	2.09	0.61	(0.72)	1.31	(1.12)	3.29
CWGIX	0.54	(0.05)	(0.12)	0.05	0.72	(0.55)	1.18	(1.36)	3.19
ANCFX	0.57	(0.01)	(0.03)	0.11	0.79	(0.57)	1.41	(1.44)	3.53
CAIBX	0.33	0.02	(0.26)	(12.11)	0.38	(0.34)	0.67	(0.64)	1.82
ANWPX	0.57	(0.05)	(0.09)	0.06	0.76	(0.56)	1.19	(1.42)	3.67

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American Funds Correlations

American Funds Correlation With Market

Weak diversification

Moving together with American Mutual Fund

Related Correlations Analysis

Risk-Adjusted Indicators

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