American Mutual Fund Manager Performance Evaluation

RLEFX -  USA Fund  

USD 33.06  0.01  0.0302%

The fund shows a Beta (market volatility) of 0.5585, which signifies possible diversification benefits within a given portfolio. Let's try to break down what American's beta means in this case. As returns on the market increase, American Balanced returns are expected to increase less than the market. However, during the bear market, the loss on holding American Balanced will be expected to be smaller as well. Even though it is essential to pay attention to American Balanced historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any fund's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. American Balanced exposes twenty-one different technical indicators, which can help you to evaluate its performance.

American Mutual Fund Performance 

 
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American Performance
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Over the last 90 days American Balanced has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, American Balanced is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Fifty Two Week Low29.98
Fifty Two Week High34.06
Annual Report Expense Ratio0.40%

American Balanced Relative Risk vs. Return Landscape

If you would invest  3,341  in American Balanced on October 20, 2021 and sell it today you would lose (35.00)  from holding American Balanced or give up 1.05% of portfolio value over 90 days. American Balanced is currently producing negative expected returns and takes up 0.6313% volatility of returns over 90 trading days. Put another way, 5% of traded mutual funds are less volatile than American, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days.
 Daily Expected Return (%) 
      Risk (%) 
Assuming the 90 days horizon American Balanced is expected to under-perform the market. But the company apears to be less risky and when comparing its historical volatility, the company is 1.26 times less risky than the market. the firm trades about -0.02 of its potential returns per unit of risk. The DOW is currently generating roughly 0.02 of returns per unit of risk over similar time horizon.

American Balanced Current Valuation

Fairly Valued
Today
33.06
18th of January 2022
Share
Please note that American Balanced's price fluctuation is very steady at this time.
American Balanced shows a prevailing Real Value of $33.12 per share. The current price of the fund is $33.06. At this time, the entity appears to be fairly valued. We determine the value of American Balanced from analyzing fund fundamentals and technical indicators as well as its Probability Of Bankruptcy. In general, we favor acquiring undervalued instruments and dropping overvalued instruments since, at some point, stock prices and their ongoing real values will blend.
Our valuation method for American Balanced is useful when determining the fair value of the American mutual fund, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Balanced. Since American Balanced is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Mutual Fund. However, American Balanced's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
33.12
Real Value
33.75
Upside
Estimating the potential upside or downside of American Balanced helps investors to forecast how American mutual fund's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Balanced more accurately as focusing exclusively on American Balanced's fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
32.6133.2733.93
Details
Hype
Prediction
LowEstimated ValueHigh
32.4233.0533.68
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.660.670.67
Details

American Balanced Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for American Balanced's investment risk. Standard deviation is the most common way to measure market volatility of mutual funds, such as American Balanced, and traders can use it to determine the average amount a American Balanced's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.0238

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Estimated Market Risk
 0.63
  actual daily
 
 5 %
of total potential
 
55
Expected Return
 -0.01
  actual daily
 
 0 %
of total potential
 
00
Risk-Adjusted Return
 -0.02
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 0 %
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00
Based on monthly moving average American Balanced is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of American Balanced by adding it to a well-diversified portfolio.

About American Balanced Performance

To evaluate American Balanced Mutual Fund as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when American Balanced generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare American Mutual Fund's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand American Balanced stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents American's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
The investment seeks conservation of capital, current income and long-term growth of capital and income. American Balanced is traded on NASDAQ Exchange in the United States.

Things to note about American Balanced

Checking the ongoing alerts about American Balanced for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for American Balanced help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

American Balanced Alerts

Equity Alerts and Improvement Suggestions

American Balanced generated a negative expected return over the last 90 days
American Balanced is unlikely to experience financial distress in the next 2 years
On 14th of December 2021 American Balanced paid $ 0.114 per share dividend to its current shareholders
The fund maintains about 7.88% of its assets in cash
Additionally, take a look at Your Equity Center. Note that the American Balanced information on this page should be used as a complementary analysis to other American Balanced'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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When running American Balanced price analysis, check to measure American Balanced'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 Balanced is operating at the current time. Most of American Balanced's value examination focuses on studying past and present price action to predict the probability of American Balanced's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Balanced's price. Additionally, you may evaluate how the addition of American Balanced to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between American Balanced's value and its price as these two are different measures arrived at by different means. Investors typically determine American Balanced value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Balanced'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.