Fundamental Mutual Fund Alpha and Beta Analysis

ANCFX
 Fund
  

USD 57.13  1.81  3.07%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Fundamental Investors Class. It also helps investors analyze the systematic and unsystematic risks associated with investing in Fundamental Investors over a specified time horizon. Remember, high Fundamental Investors' 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 Fundamental Investors Backtesting, Portfolio Optimization, Fundamental Investors Correlation, Fundamental Investors Hype Analysis, Fundamental Investors Volatility, Fundamental Investors History and analyze Fundamental Investors Performance.
  
Please note that although Fundamental Investors 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, Fundamental Investors did 0.001341  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 Fundamental Investors Class fund's relative risk over its benchmark. Fundamental Investors has a beta of 0.10  . Let's try to break down what Fundamental's beta means in this case. As returns on the market increase, Fundamental Investors returns are expected to increase less than the market. However, during the bear market, the loss on holding Fundamental Investors 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.

Fundamental Investors Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Fundamental Investors market risk premium is the additional return an investor will receive from holding Fundamental Investors 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 Fundamental Investors. 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 Fundamental Investors' performance over market.
α-0.0013   β0.10
90 days against DJI

Fundamental Investors 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 Fundamental Investors' Buy-and-hold return. Our buy-and-hold chart shows how Fundamental Investors performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Fundamental Investors Market Price Analysis

Market price analysis indicators help investors to evaluate how Fundamental Investors 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 Fundamental Investors shares will generate the highest return on investment. By understating and applying Fundamental Investors mutual fund market price indicators, traders can identify Fundamental Investors position entry and exit signals to maximize returns.

Fundamental Investors Return and Market Media

The median price of Fundamental Investors for the period between Fri, Jul 8, 2022 and Thu, Oct 6, 2022 is 61.05 with a coefficient of variation of 4.32. The daily time series for the period is distributed with a sample standard deviation of 2.64, arithmetic mean of 61.12, and mean deviation of 2.14. The Fund did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

About Fundamental Investors 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 Fundamental or other funds. Alpha measures the amount that position in Fundamental Investors 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 Fundamental Investors 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, Fundamental Investors' short interest history, or implied volatility extrapolated from Fundamental Investors options trading.

Build Portfolio with Fundamental Investors

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

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By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please continue to Fundamental Investors Backtesting, Portfolio Optimization, Fundamental Investors Correlation, Fundamental Investors Hype Analysis, Fundamental Investors Volatility, Fundamental Investors History and analyze Fundamental Investors Performance. Note that the Fundamental Investors information on this page should be used as a complementary analysis to other Fundamental Investors' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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When running Fundamental Investors price analysis, check to measure Fundamental Investors' 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 Fundamental Investors is operating at the current time. Most of Fundamental Investors' value examination focuses on studying past and present price action to predict the probability of Fundamental Investors' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Fundamental Investors' price. Additionally, you may evaluate how the addition of Fundamental Investors to your portfolios can decrease your overall portfolio volatility.
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Fundamental Investors 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 Fundamental Investors technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Fundamental Investors 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...