Macroaxis considers American Airlines not too risky given 1 month investment horizon. American Airlines Group secures Sharpe Ratio (or Efficiency) of 0.3973 which signifies that American Airlines Group had 0.3973% of return per unit of standard deviation over the last 1 month. Our philosophy in foreseeing volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. By analyzing American Airlines Group technical indicators you can presently evaluate if the expected return of 0.5591% is justified by implied risk. Please makes use of American Airlines Group Mean Deviation of 1.07 and Risk Adjusted Performance of 0.1692 to double-check if our risk estimates are consistent with your expectations.
|Investment Horizon||30 Days Login to change|
American Airlines Market Sensitivity
|As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, American Airlines will likely underperform.One Month Beta |Analyze American Airlines Group Demand TrendCheck current 30 days American Airlines correlation with market (DOW)|
β = 1.3382
American Airlines Group Technical Analysis
Projected Return Density Against MarketConsidering 30-days investment horizon, the stock has beta coefficient of 1.3382 . This suggests as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, American Airlines will likely underperform. Moreover, American Airlines Group Inc has an alpha of 0.2517 implying that it can potentially generate 0.2517% excess return over DOW after adjusting for the inherited market risk (beta).
Considering 30-days investment horizon, the coefficient of variation of American Airlines is 251.7. The daily returns are destributed with a variance of 1.98 and standard deviation of 1.41. The mean deviation of American Airlines Group Inc is currently at 1.08. For similar time horizon, the selected benchmark (DOW) has volatility of 0.51