American Funds 2030 Fund Alpha and Beta Analysis

RBEEX Fund  USD 16.04  0.04  0.25%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as American Funds 2030. It also helps investors analyze the systematic and unsystematic risks associated with investing in American Funds over a specified time horizon. Remember, high American Funds' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to American Funds' market risk premium analysis include:
Beta
0.63
Alpha
(0.01)
Risk
0.45
Sharpe Ratio
0.0588
Expected Return
0.0263
Please note that although American Funds alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, American Funds did 0.01  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of American Funds 2030 fund's relative risk over its benchmark. American Funds 2030 has a beta of 0.63  . As returns on the market increase, American Funds' returns are expected to increase less than the market. However, during the bear market, the loss of holding American Funds is expected to be smaller as well. .
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
  
Check out American Funds Backtesting, Portfolio Optimization, American Funds Correlation, American Funds Hype Analysis, American Funds Volatility, American Funds History and analyze American Funds Performance.

American Funds Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. American Funds market risk premium is the additional return an investor will receive from holding American Funds long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in American Funds. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate American Funds' performance over market.
α-0.01   β0.63

American Funds expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of American Funds' Buy-and-hold return. Our buy-and-hold chart shows how American Funds performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

American Funds Market Price Analysis

Market price analysis indicators help investors to evaluate how American Funds mutual fund reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading American Funds shares will generate the highest return on investment. By understating and applying American Funds mutual fund market price indicators, traders can identify American Funds position entry and exit signals to maximize returns.

American Funds Return and Market Media

 Price Growth (%)  
       Timeline  

About American Funds Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including American or other funds. Alpha measures the amount that position in American Funds 2030 has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
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 Funds 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 Funds' short interest history, or implied volatility extrapolated from American Funds options trading.

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Check out American Funds Backtesting, Portfolio Optimization, American Funds Correlation, American Funds Hype Analysis, American Funds Volatility, American Funds History and analyze American Funds Performance.
Note that the American Funds 2030 information on this page should be used as a complementary analysis to other American Funds' 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
American Funds technical mutual fund 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, fund market cycles, or different charting patterns.
A focus of American Funds technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of American Funds trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...