American Equity Investment Stock Market Value
| AEL Stock | USD 55.40 0.26 0.47% |
| Symbol | American |
American Equity Inve Price To Book Ratio
Is American Equity's 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 Equity. 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 Equity 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 0.188 | Earnings Share 2.06 | Revenue Per Share 35.569 | Quarterly Revenue Growth 0.614 | Return On Assets 0.0027 |
The market value of American Equity Inve 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 Equity's value that differs from its market value or its book value, called intrinsic value, which is American Equity's 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 Equity's market value can be influenced by many factors that don't directly affect American Equity's 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 Equity's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Equity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Equity's 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 Equity '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 Equity's 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 Equity.
| 03/20/2024 |
| 04/19/2024 |
If you would invest 0.00 in American Equity on March 20, 2024 and sell it all today you would earn a total of 0.00 from holding American Equity Investment or generate 0.0% return on investment in American Equity over 30 days. American Equity is related to or competes with MetLife Preferred, National Western, Prudential Public, MetLife Preferred, Jackson Financial, MetLife Preferred, and Brighthouse Financial. American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products in the Unite... More
American Equity 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 Equity's 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 Equity Investment upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.2765 | |||
| Information Ratio | (0.24) | |||
| Maximum Drawdown | 1.33 | |||
| Value At Risk | (0.45) | |||
| Potential Upside | 0.5086 |
American Equity Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for American Equity's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as American Equity's standard deviation. In reality, there are many statistical measures that can use American Equity historical prices to predict the future American Equity's volatility.| Risk Adjusted Performance | (0) | |||
| Jensen Alpha | (0.02) | |||
| Total Risk Alpha | (0.03) | |||
| Sortino Ratio | (0.23) | |||
| Treynor Ratio | (0.02) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of American Equity's 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 Equity Inve Backtested Returns
We consider American Equity very steady. American Equity Inve secures Sharpe Ratio (or Efficiency) of 0.0045, which signifies that the company had a 0.0045% return per unit of standard deviation over the last 3 months. We have found twenty-eight technical indicators for American Equity Investment, which you can use to evaluate the volatility of the firm. Please confirm American Equity's risk adjusted performance of (0), and Mean Deviation of 0.2057 to double-check if the risk estimate we provide is consistent with the expected return of 0.0012%. The firm shows a Beta (market volatility) of 0.23, which signifies not very significant fluctuations relative to the market. As returns on the market increase, American Equity's returns are expected to increase less than the market. However, during the bear market, the loss of holding American Equity is expected to be smaller as well. American Equity Inve right now shows a risk of 0.27%. Please confirm American Equity Inve treynor ratio, expected short fall, and the relationship between the jensen alpha and potential upside , to decide if American Equity Inve will be following its price patterns.
Auto-correlation | 0.44 |
Average predictability
American Equity Investment has average predictability. Overlapping area represents the amount of predictability between American Equity time series from 20th of March 2024 to 4th of April 2024 and 4th of April 2024 to 19th 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 Equity Inve price movement. The serial correlation of 0.44 indicates that just about 44.0% of current American Equity price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.44 | |
| Spearman Rank Test | 0.49 | |
| Residual Average | 0.0 | |
| Price Variance | 0.11 |
American Equity Inve lagged returns against current returns
Autocorrelation, which is American Equity 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 Equity's stock expected returns. We can calculate the autocorrelation of American Equity returns to help us make a trade decision. For example, suppose you find that American Equity 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 Equity 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 Equity stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if American Equity stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in American Equity stock over time.
Current vs Lagged Prices |
| Timeline |
American Equity Lagged Returns
When evaluating American Equity's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of American Equity stock have on its future price. American Equity 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 Equity autocorrelation shows the relationship between American Equity stock current value and its past values and can show if there is a momentum factor associated with investing in American Equity Investment.
Regressed Prices |
| Timeline |
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 American Equity 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, American Equity's short interest history, or implied volatility extrapolated from American Equity options trading.
Pair Trading with American Equity
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 Equity 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 Equity will appreciate offsetting losses from the drop in the long position's value.Moving together with American Stock
| 0.64 | MET-PA | MetLife Preferred Stock | PairCorr |
Moving against American Stock
| 0.82 | FLFG | Federal Life Group | PairCorr |
| 0.75 | CIA | Citizens | PairCorr |
The ability to find closely correlated positions to American Equity 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 Equity 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 Equity - 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 Equity Investment to buy it.
The correlation of American Equity 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 Equity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Equity Inve 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 Equity 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 Equity Correlation, American Equity Volatility and American Equity Alpha and Beta module to complement your research on American Equity. Note that the American Equity Inve information on this page should be used as a complementary analysis to other American Equity's 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Complementary Tools for American Stock analysis
When running American Equity's price analysis, check to measure American Equity's 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 Equity is operating at the current time. Most of American Equity's value examination focuses on studying past and present price action to predict the probability of American Equity's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Equity's price. Additionally, you may evaluate how the addition of American Equity to your portfolios can decrease your overall portfolio volatility.
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American Equity 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.