American Mutual Fund Alpha and Beta Analysis

AAATX
 Fund
  

USD 10.67  0.15  1.43%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as American Fds 2010. It also helps investors analyze the systematic and unsystematic risks associated with investing in American Fds over a specified time horizon. Remember, high American Fds' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Please continue to American Fds Backtesting, Portfolio Optimization, American Fds Correlation, American Fds Hype Analysis, American Fds Volatility, American Fds History and analyze American Fds Performance.
  
Please note that although American Fds alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, American Fds did 0.036813  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of American Fds 2010 fund's relative risk over its benchmark. American Fds 2010 has a beta of 0.46  . Let's try to break down what American's beta means in this case. As returns on the market increase, American Fds returns are expected to increase less than the market. However, during the bear market, the loss on holding American Fds will be expected to be smaller as well.
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

American Fds Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. American Fds market risk premium is the additional return an investor will receive from holding American Fds long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in American Fds. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate American Fds' performance over market.
α-0.04   β0.46
90 days against DJI

American Fds expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of American Fds' Buy-and-hold return. Our buy-and-hold chart shows how American Fds performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

American Fds Market Price Analysis

Market price analysis indicators help investors to evaluate how American Fds mutual fund reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading American Fds shares will generate the highest return on investment. By understating and applying American Fds mutual fund market price indicators, traders can identify American Fds position entry and exit signals to maximize returns.

American Fds Return and Market Media

The median price of American Fds for the period between Wed, Jul 6, 2022 and Tue, Oct 4, 2022 is 11.18 with a coefficient of variation of 2.4. The daily time series for the period is distributed with a sample standard deviation of 0.27, arithmetic mean of 11.18, and mean deviation of 0.21. The Fund did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About American Fds Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including American or other funds. Alpha measures the amount that position in American Fds 2010 has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards American Fds in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, American Fds' short interest history, or implied volatility extrapolated from American Fds options trading.

Build Portfolio with American Fds

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Please continue to American Fds Backtesting, Portfolio Optimization, American Fds Correlation, American Fds Hype Analysis, American Fds Volatility, American Fds History and analyze American Fds Performance. You can also try Global Correlations module to find global opportunities by holding instruments from different markets.

Complementary Tools for analysis

When running American Fds 2010 price analysis, check to measure American Fds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Fds is operating at the current time. Most of American Fds' value examination focuses on studying past and present price action to predict the probability of American Fds' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Fds' price. Additionally, you may evaluate how the addition of American Fds to your portfolios can decrease your overall portfolio volatility.
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American Fds technical mutual fund analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, fund market cycles, or different charting patterns.
A focus of American Fds technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of American Fds trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...