Arlington Story

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AAIC -- USA Stock  

USD 3.97  0.14  3.41%

Whilst many millenniums are getting more into real estate space, it makes sense to go over Arlington Asset Investment against current trends within the economy. As expected, Arlington Asset is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The returns on the market and returns on Arlington Asset appear slightly correlated for the last few months. The appearance of strong basic indicators of the company suggests a short-term price swing for investors of Arlington. Arlington Asset Inve is scheduled to announce its earnings today.
Published over a week ago
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Is Arlington (NYSE:AAIC) outlook positive for March?
The firm's average rating is Hold from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Arlington Asset market sentiment investors' perception of the future value of Arlington. Let us look at a few aspects of Arlington technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Arlington Asset Investment. In general, we focus on analyzing Arlington Asset stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Arlington Asset's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Arlington Asset's intrinsic value. In addition to deriving basic predictive indicators for Arlington Asset, we also check how macroeconomic factors affect Arlington Asset price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Arlington Asset's stock 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. Please use the tools below to analyze the current value of Arlington Asset in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Arlington Asset. Your research has to be compared to or analyzed against Arlington Asset's peers to derive any actionable benefits. When done correctly, Arlington Asset's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Arlington Asset Inve.

How does Arlington Stands against Peers?

Analyzing Arlington Asset competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Arlington Asset across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Arlington Asset Competition Details

How Arlington utilizes its cash?

To perform a cash flow analysis of Arlington Asset, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Arlington Asset is receiving and how much cash it distributes out in a given period. The Arlington Asset cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Arlington Asset Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 53.55 Million

Acquisition by Konzmann Richard Ernst of 25487 shares of Arlington Asset subject to Rule 16b-3

Legal trades by Arlington Asset insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Arlington insider trading alert for grant of class a common stock by Konzmann Richard Ernst, EVP CFO and Treasurer, on 4th of February 2021. This event was filed by Arlington Asset Investmen with SEC on 2021-02-04. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at Arlington Asset Downside Variance

Arlington Asset Investment has current Downside Variance of 2.33. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.

Downside Variance is the probability-weighted squared below-target returns. The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.

Downside Variance 
 = 
SUM(RET DEV)2 
N(ER) 
 = 
2.33
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N(ER) = Number of points with returns less than expected return for the period
Let's now compare Arlington Asset Downside Variance to its closest peers:
AAIC
DX
EARN
FREVS
ABR
AAIC2.334456261714
DX1.53
EARN3.55
FREVS18.26
ABR4.89

Can Arlington Asset build up on the current rise?

The maximum drawdown is down to 8.36 as of today. Arlington Asset Investment has relatively low volatility with skewness of 0.24 and kurtosis of 0.09. However, we advise all investors to independently investigate Arlington Asset Investment to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Takeaway

Whereas some other companies under the reit?mortgage industry are still a bit expensive, Arlington Asset may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Arlington Asset.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Arlington Asset Investment. Please refer to our Terms of Use for any information regarding our disclosure principles.

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