American High Income Municipal Fund Probability Of Bankruptcy

AMHIX Fund  USD 15.08  0.01  0.07%   
American High-income's odds of distress is under 39% at this time. It has slight probability of undergoing some form of financial crunch in the near future. Chance Of Bankruptcy shows the probability of financial distress over the next two years of operations under current economic and market conditions. All items used in analyzing the odds of distress are taken from the American balance sheet, as well as cash flow and income statements available from the company's most recent filings. Check out American High-income Piotroski F Score and American High-income Altman Z Score analysis.
  

American Probability Of Bankruptcy Analysis

American High-income's Probability Of Bankruptcy is a relative measure of the likelihood of financial distress. For stocks, the Probability Of Bankruptcy is the normalized value of Z-Score. For funds and ETFs, it is derived from a multi-factor model developed by Macroaxis. The score is used to predict the probability of a firm or a fund experiencing financial distress within the next 24 months. Unlike Z-Score, Probability Of Bankruptcy is the value between 0 and 100, indicating the firm's actual probability it will be financially distressed in the next 2 fiscal years.

Probability Of Bankruptcy

 = 

Normalized

Z-Score

More About Probability Of Bankruptcy | All Equity Analysis

Current American High-income Probability Of Bankruptcy

    
  Less than 39%  
Most of American High-income's fundamental indicators, such as Probability Of Bankruptcy, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, American High Income Municipal is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Our calculation of American High-income probability of bankruptcy is based on Altman Z-Score and Piotroski F-Score, but not limited to these measures. To be applied to a broader range of industries and markets, we use several other techniques to enhance the accuracy of predicting American High-income odds of financial distress. These include financial statement analysis, different types of price predictions, earning estimates, analysis consensus, and basic intrinsic valuation. Please use the options below to get a better understanding of different measures that drive the calculation of American High Income Municipal financial health.
Please note, there is a significant difference between American High-income's value and its price as these two are different measures arrived at by different means. Investors typically determine if American High-income is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American High-income'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.
The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection. Macroaxis simply defines Financial Distress as an operational condition where a company is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from both public financial statements as well as analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors taken into account include analysis of liquidity, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
Competition

American High-income Probability Of Bankruptcy Component Assessment

Based on the latest financial disclosure, American High Income Municipal has a Probability Of Bankruptcy of 39.0%. This is much higher than that of the American Funds family and significantly higher than that of the High Yield Muni category. The probability of bankruptcy for all United States funds is notably lower than that of the firm.

American Probability Of Bankruptcy Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American High-income's direct or indirect competition against its Probability Of Bankruptcy to detect undervalued stocks with similar characteristics or determine the mutual funds which would be a good addition to a portfolio. Peer analysis of American High-income could also be used in its relative valuation, which is a method of valuing American High-income by comparing valuation metrics of similar companies.
American High is currently under evaluation in probability of bankruptcy among similar funds.

American Fundamentals

About American High-income Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze American High Income Municipal's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American High-income using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American High Income Municipal based on its fundamental data. In general, a quantitative approach, as applied to this mutual fund, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Under normal circumstances, the fund will invest at least 80 percent of its assets in, or derive at least 80 percent of its income from, securities that are exempt from regular federal income tax and may subject the investors to alternative minimum tax. It may invest, without limitation, in securities that may subject the investors to federal alternative minimum tax. The fund invests at least 50 percent of its portfolio in debt securities rated BBB or below or Baa1 or below, or unrated but determined by the funds investment adviser to be of equivalent quality.
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 High-income 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 High-income's short interest history, or implied volatility extrapolated from American High-income options trading.

Pair Trading with American High-income

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American High-income position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American High-income will appreciate offsetting losses from the drop in the long position's value.

Moving together with American Mutual Fund

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The ability to find closely correlated positions to American High-income could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American High-income when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American High-income - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American High Income Municipal to buy it.
The correlation of American High-income is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American High-income moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American High-income moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American High-income can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Check out American High-income Piotroski F Score and American High-income Altman Z Score analysis.
You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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