American Balanced Fund Alpha and Beta Analysis
| RLBAX Fund | USD 32.83 0.35 1.05% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as American Balanced Fund. It also helps investors analyze the systematic and unsystematic risks associated with investing in American Balanced over a specified time horizon. Remember, high American Balanced's 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 Balanced's market risk premium analysis include:
Beta 0.73 | Alpha 0.004843 | Risk 0.5 | Sharpe Ratio 0.15 | Expected Return 0.0772 |
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.
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American Balanced Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. American Balanced market risk premium is the additional return an investor will receive from holding American Balanced 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 Balanced. 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 Balanced's performance over market.| α | 0 | β | 0.73 |
American Balanced 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 Balanced's Buy-and-hold return. Our buy-and-hold chart shows how American Balanced performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.American Balanced Market Price Analysis
Market price analysis indicators help investors to evaluate how American Balanced 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 Balanced shares will generate the highest return on investment. By understating and applying American Balanced mutual fund market price indicators, traders can identify American Balanced position entry and exit signals to maximize returns.
American Balanced Return and Market Media
The median price of American Balanced for the period between Wed, Jan 17, 2024 and Tue, Apr 16, 2024 is 32.62 with a coefficient of variation of 1.99. The daily time series for the period is distributed with a sample standard deviation of 0.65, arithmetic mean of 32.58, and mean deviation of 0.57. The Fund did not receive any noticable media coverage during the period. Price Growth (%) |
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About American Balanced 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 Balanced 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 Balanced 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 Balanced's short interest history, or implied volatility extrapolated from American Balanced options trading.
Build Portfolio with American Balanced
Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.Build Diversified Portfolios
Align your risk with return expectations
Check out American Balanced Backtesting, Portfolio Optimization, American Balanced Correlation, American Balanced Hype Analysis, American Balanced Volatility, American Balanced History and analyze American Balanced Performance. 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 the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
American Balanced 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.