New World Correlations

RNWFX Fund

USD 98.67 0.19 0.19%

The current 90-days correlation between New World Fund and Nuveen Real Estate is 0.35 (i.e., Weak diversification). The correlation of New World 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.

New World Correlation With Market

Poor diversification

The correlation between New World Fund and DJI is 0.67 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding New World Fund 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 New World Fund. 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 New Mutual Fund

1.0	RNEBX	New World Fund	Pair Corr
0.94	RNGFX	New Economy Fund	Pair Corr
0.74	FPTPX	American Funds Conse	Pair Corr
0.89	RNNEX	New Economy Fund	Pair Corr
0.8	RNPFX	New Perspective	Pair Corr
0.71	AMRFX	American Mutual	Pair Corr
0.8	RNRPX	American Funds Retirement	Pair Corr
1.0	RNWGX	New World Fund	Pair Corr
0.87	ANWFX	New Perspective	Pair Corr
0.88	CWIFX	Capital World Growth	Pair Corr
0.84	CEUFX	Europacific Growth	Pair Corr
0.73	HIMFX	American High Income	Pair Corr
0.81	GWPEX	American Funds Growth	Pair Corr
0.89	FAXTX	American Funds 2065	Pair Corr
0.84	FBAFX	American Funds American	Pair Corr
0.82	CGNFX	American Funds Growth	Pair Corr
0.84	FBONX	American Funds American	Pair Corr
0.79	RRPPX	American Funds Retirement	Pair Corr
0.84	FUEPX	American Funds Europ	Pair Corr
0.94	FCWGX	American Funds Capital	Pair Corr
0.86	FDFTX	American Funds 2035	Pair Corr
0.88	RBHEX	American Funds 2050	Pair Corr
0.88	RBHTX	American Funds 2045	Pair Corr
0.88	FWCGX	American Funds Capital	Pair Corr
0.84	FEPUX	American Funds Europ	Pair Corr
0.84	RCKTX	American Funds 2040	Pair Corr
0.85	RCPTX	American Funds 2065	Pair Corr
0.88	FWWNX	American Funds New	Pair Corr

Related Correlations Analysis

	FREAX	MXREX	PJEAX	NRSCX	PNDIX	BREUX	FORFX
FREAX		0.95	0.94	-0.16	0.22	0.29	0.21	FREAX
MXREX	0.95		0.92	-0.04	0.23	0.43	0.22	MXREX
PJEAX	0.94	0.92		-0.14	-0.02	0.48	0.0	PJEAX
NRSCX	-0.16	-0.04	-0.14		-0.23	0.39	-0.28	NRSCX
PNDIX	0.22	0.23	-0.02	-0.23		-0.31	0.98	PNDIX
BREUX	0.29	0.43	0.48	0.39	-0.31		-0.32	BREUX
FORFX	0.21	0.22	0.0	-0.28	0.98	-0.32		FORFX
	FREAX	MXREX	PJEAX	NRSCX	PNDIX	BREUX	FORFX

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

FORFX	+ 0.98	PNDIX
MXREX	+ 0.95	FREAX
PJEAX	+ 0.94	FREAX
PJEAX	+ 0.92	MXREX
BREUX	+ 0.48	PJEAX
BREUX	+ 0.43	MXREX

High negative correlations

FORFX	- 0.32	BREUX
BREUX	- 0.31	PNDIX
FORFX	- 0.28	NRSCX
PNDIX	- 0.23	NRSCX
NRSCX	- 0.16	FREAX
NRSCX	- 0.14	PJEAX

Risk-Adjusted Indicators

There is a big difference between New Mutual Fund performing well and New World 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 New World'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.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
FREAX	0.59	(0.02)	(0.13)	(0.04)	0.76	(0.63)	1.37	(1.18)	3.83
MXREX	0.60	(0.02)	(0.13)	(0.05)	0.75	(0.66)	1.46	(1.12)	3.86
PJEAX	0.61	(0.03)	0.00	(0.11)	0.00	0.00	1.36	(1.27)	3.75
NRSCX	0.28	(0.02)	0.00	(0.34)	0.00	0.00	0.57	(0.79)	1.72
PNDIX	0.04	0.02	0.00	(1.40)	0.00	0.00	0.10	0.00	0.20
BREUX	0.75	(0.07)	(0.08)	0.02	0.92	(0.81)	1.90	(1.65)	4.46
FORFX	0.05	0.02	0.00	2.58	0.00	0.00	0.10	0.00	0.21

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