American Mutual Fund Volatility

AABTX
 Fund
  

USD 11.69  0.01  0.09%   

American Fds 2015 secures Sharpe Ratio (or Efficiency) of -0.18, which signifies that the fund had -0.18% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in foreseeing the risk of any fund is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. American Fds 2015 exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm American Fds 2015 mean deviation of 0.5292, and Risk Adjusted Performance of (0.23) to double-check the risk estimate we provide.
  
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American Fds Mutual Fund volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of American daily returns, and it is calculated using variance and standard deviation. We also use American's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of American Fds volatility.

90 Days Market Risk

Out of control

Chance of Distress

Very Small

90 Days Economic Sensitivity

Barely shadows the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as American Fds can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of American Fds at lower prices. For example, an investor can purchase American stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of American Fds' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving together with American Fds

0.97VTXVXVanguard Target RetiPairCorr
0.73VITVXVanguard InstitutionalPairCorr
0.96FPTKXFidelity Freedom 2015PairCorr
0.93FSNLXFidelity Freedom 2015PairCorr
0.98FFVFXFidelity Freedom 2015PairCorr
1.0REJTXAmerican Fds 2015PairCorr

American Fds Market Sensitivity And Downside Risk

American Fds' beta coefficient measures the volatility of American mutual fund compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents American mutual fund's returns against your selected market. In other words, American Fds's beta of 0.46 provides an investor with an approximation of how much risk American Fds mutual fund can potentially add to one of your existing portfolios.
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.
3 Months Beta |Analyze American Fds 2015 Demand Trend
Check current 90 days American Fds correlation with market (DOW)

American Beta

    
  0.46  
American standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  0.7  
It is essential to understand the difference between upside risk (as represented by American Fds's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of American Fds stock's daily returns or price. Since the actual investment returns on holding a position in American Fds stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in American Fds.

American Fds 2015 Mutual Fund Volatility Analysis

Volatility refers to the frequency at which American Fds stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with American Fds' price changes. Investors will then calculate the volatility of American Fds' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of American Fds' volatility:

Historical Volatility

This type of stock volatility measures American Fds' fluctuations based on previous trends. It's commonly used to predict American Fds' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for American Fds' current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. American Fds 2015 Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
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American Fds Projected Return Density Against Market

Assuming the 90 days horizon American Fds has a beta of 0.4558 . This suggests as returns on the market go up, American Fds average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding American Fds 2015 will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Fds or American Funds sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Fds stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. American Fds 2015 is significantly underperforming DOW.
 Predicted Return Density 
      Returns 
American Fds' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how American Fds stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

American Fds Mutual Fund Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to American Fds or American Funds sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that American Fds stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a American stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Assuming the 90 days horizon the coefficient of variation of American Fds is -552.25. The daily returns are distributed with a variance of 0.49 and standard deviation of 0.7. The mean deviation of American Fds 2015 is currently at 0.54. For similar time horizon, the selected benchmark (DOW) has volatility of 1.41
α
Alpha over DOW
-0.05
β
Beta against DOW0.46
σ
Overall volatility
0.70
Ir
Information ratio 0.0282

American Fds Mutual Fund Return Volatility

American Fds historical daily return volatility represents how much American Fds stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The fund shows 0.7031% volatility of returns over 90 . By contrast, DOW inherits 1.4543% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
      Timeline 

About American Fds Volatility

Volatility is a rate at which the price of American Fds or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of American Fds may increase or decrease. In other words, similar to American's beta indicator, it measures the risk of American Fds and helps estimate the fluctuations that may happen in a short period of time. So if prices of American Fds fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
The investment seeks growth, income and conservation of capital. American Fds is traded on NASDAQ Exchange in the United States.

American Fds Investment Opportunity

DOW has a standard deviation of returns of 1.45 and is 2.07 times more volatile than American Fds 2015. of all equities and portfolios are less risky than American Fds. Compared to the overall equity markets, volatility of historical daily returns of American Fds 2015 is lower than 6 () of all global equities and portfolios over the last 90 days. Use American Fds 2015 to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend and little activity. Check odds of American Fds to be traded at $11.57 in 90 days. . 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.

Almost no diversification

The correlation between American Fds 2015 and DJI is Almost no diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Fds 2015 and DJI in the same portfolio, assuming nothing else is changed.

American Fds Additional Risk Indicators

The analysis of American Fds' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in American Fds' investment and either accepting that risk or mitigating it. Along with some common measures of American Fds stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance(0.23)
Market Risk Adjusted Performance(0.24)
Mean Deviation0.5292
Coefficient Of Variation(656.29)
Standard Deviation0.69
Variance0.4762
Information Ratio0.0282
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

American Fds Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against American Fds as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. American Fds' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, American Fds' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to American Fds 2015.
Please continue to Trending Equities. Note that the American Fds 2015 information on this page should be used as a complementary analysis to other American Fds' 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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When running American Fds 2015 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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Please note, there is a significant difference between American Fds' value and its price as these two are different measures arrived at by different means. Investors typically determine American Fds value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Fds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.