American Airlines Group Stock Market Value
| AAL Stock | USD 14.23 0.34 2.45% |
| Symbol | American |
American Airlines Price To Book Ratio
Is American Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Airlines. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.97) | Earnings Share 1.21 | Revenue Per Share 80.764 | Quarterly Revenue Growth (0.01) | Return On Assets 0.0396 |
The market value of American Airlines is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Airlines' value that differs from its market value or its book value, called intrinsic value, which is American Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Airlines' market value can be influenced by many factors that don't directly affect American Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Airlines' 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.
American Airlines 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to American Airlines' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of American Airlines.
| 03/19/2024 |
| 04/18/2024 |
If you would invest 0.00 in American Airlines on March 19, 2024 and sell it all today you would earn a total of 0.00 from holding American Airlines Group or generate 0.0% return on investment in American Airlines over 30 days. American Airlines is related to or competes with Delta Air, Southwest Airlines, JetBlue Airways, Spirit Airlines, United Airlines, and Frontier Group. American Airlines Group Inc., through its subsidiaries, operates as a network air carrier More
American Airlines Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure American Airlines' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess American Airlines Group upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.39 | |||
| Information Ratio | 0.0206 | |||
| Maximum Drawdown | 16.82 | |||
| Value At Risk | (3.87) | |||
| Potential Upside | 4.59 |
American Airlines Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for American Airlines' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as American Airlines' standard deviation. In reality, there are many statistical measures that can use American Airlines historical prices to predict the future American Airlines' volatility.| Risk Adjusted Performance | 0.0338 | |||
| Jensen Alpha | 0.0167 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0228 | |||
| Treynor Ratio | 0.0546 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of American Airlines' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
American Airlines Backtested Returns
We consider American Airlines not too volatile. American Airlines secures Sharpe Ratio (or Efficiency) of 0.023, which signifies that the company had a 0.023% return per unit of standard deviation over the last 3 months. We have found twenty-seven technical indicators for American Airlines Group, which you can use to evaluate the volatility of the firm. Please confirm American Airlines' mean deviation of 1.74, and Risk Adjusted Performance of 0.0338 to double-check if the risk estimate we provide is consistent with the expected return of 0.059%. American Airlines has a performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.83, which signifies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, American Airlines will likely underperform. American Airlines right now shows a risk of 2.57%. Please confirm American Airlines downside deviation, treynor ratio, expected short fall, as well as the relationship between the jensen alpha and potential upside , to decide if American Airlines will be following its price patterns.
Auto-correlation | -0.56 |
Good reverse predictability
American Airlines Group has good reverse predictability. Overlapping area represents the amount of predictability between American Airlines time series from 19th of March 2024 to 3rd of April 2024 and 3rd of April 2024 to 18th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of American Airlines price movement. The serial correlation of -0.56 indicates that roughly 56.0% of current American Airlines price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.56 | |
| Spearman Rank Test | 0.01 | |
| Residual Average | 0.0 | |
| Price Variance | 0.15 |
American Airlines lagged returns against current returns
Autocorrelation, which is American Airlines stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting American Airlines' stock expected returns. We can calculate the autocorrelation of American Airlines returns to help us make a trade decision. For example, suppose you find that American Airlines has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
American Airlines regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If American Airlines stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if American Airlines stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in American Airlines stock over time.
Current vs Lagged Prices |
| Timeline |
American Airlines Lagged Returns
When evaluating American Airlines' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of American Airlines stock have on its future price. American Airlines autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, American Airlines autocorrelation shows the relationship between American Airlines stock current value and its past values and can show if there is a momentum factor associated with investing in American Airlines Group.
Regressed Prices |
| Timeline |
Pair Trading with American Airlines
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Airlines position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to American Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Airlines when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Airlines - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Airlines Group to buy it.
The correlation of American Airlines is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Airlines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Airlines can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out American Airlines Correlation, American Airlines Volatility and American Airlines Alpha and Beta module to complement your research on American Airlines. Note that the American Airlines information on this page should be used as a complementary analysis to other American Airlines' 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 the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Complementary Tools for American Stock analysis
When running American Airlines' price analysis, check to measure American Airlines' 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 Airlines is operating at the current time. Most of American Airlines' value examination focuses on studying past and present price action to predict the probability of American Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Airlines' price. Additionally, you may evaluate how the addition of American Airlines to your portfolios can decrease your overall portfolio volatility.
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American Airlines technical stock 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, stock market cycles, or different charting patterns.