American Balanced Fund Beneish M Score
| ABALX Fund | USD 32.69 0.06 0.18% |
American |
At this time, American Balanced's M Score is inapplicable. The earnings manipulation may begin if American Balanced's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by American Balanced executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of American Balanced's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-4.84
Beneish M Score - Inapplicable
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About American Balanced Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American Balanced's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Balanced using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Balanced 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.
Pair Trading with American Balanced
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 Balanced 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 Balanced will appreciate offsetting losses from the drop in the long position's value.Moving together with American Mutual Fund
| 0.95 | AMECX | Income Fund | PairCorr |
| 0.93 | AMFCX | American Mutual | PairCorr |
| 0.93 | AMFFX | American Mutual | PairCorr |
| 0.95 | RNCCX | American Funds Me | PairCorr |
The ability to find closely correlated positions to American Balanced 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 Balanced 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 Balanced - 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 Balanced to buy it.
The correlation of American Balanced 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 Balanced moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Balanced 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 Balanced 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.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Balanced. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.