Macroaxis considers American Airlines not too risky given 1 month investment horizon. American Airlines Group secures Sharpe Ratio (or Efficiency) of 0.1494 which signifies that American Airlines Group had 0.1494% 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. We have found twenty-eight technical indicators for American Airlines Group Inc which you can use to evaluate future volatility of the firm. Please makes use of American Airlines Group Mean Deviation of 1.13 and Risk Adjusted Performance of 0.0533 to double-check if our risk estimates are consistent with your expectations.
|Investment Horizon||30 Days Login to change|
American Airlines Market Sensitivity
|As returns on market increase, returns on owning American Airlines are expected to decrease by larger amounts. On the other hand, during market turmoil, American Airlines is expected to significantly outperform it.One Month Beta |Analyze American Airlines Group Demand TrendCheck current 30 days American Airlines correlation with market (DOW)|
β = -1.3676
Projected Return Density Against MarketConsidering 30-days investment horizon, American Airlines Group Inc has beta of -1.3676 . This suggests as returns on its benchmark rise, returns on holding American Airlines Group Inc are expected to decrease by similarly larger amounts. On the other hand, during market turmoils, American Airlines is expected to outperform its benchmark. Moreover, American Airlines Group Inc has an alpha of 0.3586 implying that it can potentially generate 0.3586% 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 669.42. The daily returns are destributed with a variance of 2.16 and standard deviation of 1.47. The mean deviation of American Airlines Group Inc is currently at 1.14. For similar time horizon, the selected benchmark (DOW) has volatility of 0.29