American Airlines Risk Analysis

We consider American Airlines not too volatile. American Airlines Group secures Sharpe Ratio (or Efficiency) of 0.0144 which signifies that American Airlines Group had 0.0144% of return per unit of standard deviation over the last 1 month. Our philosophy in foreseeing volatility of a stock is to use all available market data together with company specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for American Airlines Group Inc which you can use to evaluate future volatility of the firm. Please confirm American Airlines Group Mean Deviation of 1.49 and Risk Adjusted Performance of 0.0294 to double-check if risk estimate we provide are consistent with the epected return of 0.0305%.
Investment Horizon     30 Days    Login   to change

American Airlines Market Sensitivity

As returns on market increase, returns on owning American Airlines are expected to decrease at a much smaller rate. During bear market, American Airlines is likely to outperform the market.
One Month Beta |Analyze American Airlines Group Demand Trend
Check current 30 days American Airlines correlation with market (NYSE)
β = -0.4402
American Airlines Almost negative betaAmerican Airlines Group Beta Legend

Projected Return Density Against Market

Considering 30-days investment horizon, American Airlines Group Inc has beta of -0.4402 . This suggests as returns on benchmark increase, returns on holding American Airlines are expected to decrease at a much smaller rate. During bear market, however, American Airlines Group Inc is likely to outperform the market. Moreover, American Airlines Group Inc has an alpha of 0.0928 implying that it can potentially generate 0.0928% excess return over NYSE after adjusting for the inherited market risk (beta).
 Predicted Return Density 
Benchmark  Embed    Returns 
Considering 30-days investment horizon, the coefficient of variation of American Airlines is 6938.03. The daily returns are destributed with a variance of 4.48 and standard deviation of 2.12. The mean deviation of American Airlines Group Inc is currently at 1.5. For similar time horizon, the selected benchmark (NYSE) has volatility of 0.49
α
Alpha over NYSE
= 0.09 
βBeta against NYSE=(0.44) 
σ
Overall volatility
= 2.12 
 IrInformation ratio = 0.03 

Actual Return Volatility

American Airlines Group Inc has volatility of 2.1171% on return distribution over 30 days investment horizon. NYSE inherits 0.5121% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
Benchmark  Embed    Timeline 

30 Days Market Risk

Not too volatile

Chance of Distress in 24 months

Close to average

30 Days Economic Sensitivity

Almost neglects market

Total Debt

American Airlines Group Total Debt History

Largest Trends

American Airlines Largest Period Trend
 42.09 
  
 40.90 
1.19  2.83%
Lowest period price (30 days)
 46.80 
  
 46.61 
0.19  0.41%
Highest period price (30 days)

Investment Outlook

American Airlines Investment Opportunity
American Airlines Group Inc has a volatility of 2.12 and is 4.16 times more volatile than NYSE. 20% of all equities and portfolios are less risky than American Airlines. Compared to the overall equity markets, volatility of historical daily returns of American Airlines Group Inc is lower than 20 (%) of all global equities and portfolios over the last 30 days. Use American Airlines Group Inc to protect against small markets fluctuations. The stock experiences unexpected downward movement. The market is reacting to new fundamentals. Check odds of American Airlines to be traded at 40.92 in 30 days. As returns on market increase, returns on owning American Airlines are expected to decrease at a much smaller rate. During bear market, American Airlines is likely to outperform the market.

American Airlines correlation with market

Good diversification
Overlapping area represents the amount of risk that can be diversified away by holding American Airlines Group Inc. and equity matching NYA index in the same portfolio.

Volatility Indicators

American Airlines Current Risk Indicators