This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as American Funds Multi Sector. 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.
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 0.012304 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 Multi Sector fund's relative risk over its benchmark. American Funds Multi has a beta of 0.14 . As returns on the market increase, American Funds returns are expected to increase less than the market. However, during the bear market, the loss on holding American Funds will be 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 PremiumsInvestors 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.
American Funds expected buy-and-hold returnsAlthough 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 MediaThe median price of American Funds for the period between Sun, Jun 25, 2023 and Sat, Sep 23, 2023 is 8.93 with a coefficient of variation of 0.6. The daily time series for the period is distributed with a sample standard deviation of 0.05, arithmetic mean of 8.93, and mean deviation of 0.05. The Fund did not receive any noticable media coverage during the period.
About American Funds Beta and Alpha
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. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Complementary Tools for American Mutual Fund analysis
When running American Funds' price analysis, check to measure American Funds' 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 Funds is operating at the current time. Most of American Funds' value examination focuses on studying past and present price action to predict the probability of American Funds' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Funds' price. Additionally, you may evaluate how the addition of American Funds to your portfolios can decrease your overall portfolio volatility.
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.