American Resources Corp Stock Market Value
| AREC Stock | USD 0.90 0.14 13.46% |
| Symbol | American |
Is Oil, Gas & Consumable Fuels space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Resources. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of American Resources Corp is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Resources' value that differs from its market value or its book value, called intrinsic value, which is American Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Resources' market value can be influenced by many factors that don't directly affect American Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Resources' 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.
American Resources 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to American Resources' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of American Resources.
| 10/19/2024 |
| 11/18/2024 |
If you would invest 0.00 in American Resources on October 19, 2024 and sell it all today you would earn a total of 0.00 from holding American Resources Corp or generate 0.0% return on investment in American Resources over 30 days. American Resources is related to or competes with Ecolab, NL Industries, NioCorp Developments, Sealed Air, Perseus Mining, Mosaic, and Hudson Technologies. American Resources Corporation engages in the extraction, processing, transportation, distribution, and sale of metallur... More
American Resources Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure American Resources' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess American Resources Corp upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 5.39 | |||
| Information Ratio | 0.1528 | |||
| Maximum Drawdown | 33.45 | |||
| Value At Risk | (4.67) | |||
| Potential Upside | 10.81 |
American Resources Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for American Resources' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as American Resources' standard deviation. In reality, there are many statistical measures that can use American Resources historical prices to predict the future American Resources' volatility.| Risk Adjusted Performance | 0.1385 | |||
| Jensen Alpha | 0.8787 | |||
| Total Risk Alpha | 0.2314 | |||
| Sortino Ratio | 0.1564 | |||
| Treynor Ratio | 1.51 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of American Resources' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
American Resources Corp Backtested Returns
American Resources appears to be dangerous, given 3 months investment horizon. American Resources Corp secures Sharpe Ratio (or Efficiency) of 0.17, which signifies that the company had a 0.17% return per unit of standard deviation over the last 3 months. By analyzing American Resources' technical indicators, you can evaluate if the expected return of 0.95% is justified by implied risk. Please makes use of American Resources' risk adjusted performance of 0.1385, and Mean Deviation of 3.86 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, American Resources holds a performance score of 13. The firm shows a Beta (market volatility) of 0.62, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, American Resources' returns are expected to increase less than the market. However, during the bear market, the loss of holding American Resources is expected to be smaller as well. Please check American Resources' treynor ratio, expected short fall, and the relationship between the jensen alpha and potential upside , to make a quick decision on whether American Resources' price patterns will revert.
Auto-correlation | 0.42 |
Average predictability
American Resources Corp has average predictability. Overlapping area represents the amount of predictability between American Resources time series from 19th of October 2024 to 3rd of November 2024 and 3rd of November 2024 to 18th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of American Resources Corp price movement. The serial correlation of 0.42 indicates that just about 42.0% of current American Resources price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.42 | |
| Spearman Rank Test | -0.11 | |
| Residual Average | 0.0 | |
| Price Variance | 0.01 |
American Resources Corp lagged returns against current returns
Autocorrelation, which is American Resources stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting American Resources' stock expected returns. We can calculate the autocorrelation of American Resources returns to help us make a trade decision. For example, suppose you find that American Resources has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
American Resources regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If American Resources stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if American Resources stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in American Resources stock over time.
Current vs Lagged Prices |
| Timeline |
American Resources Lagged Returns
When evaluating American Resources' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of American Resources stock have on its future price. American Resources autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, American Resources autocorrelation shows the relationship between American Resources stock current value and its past values and can show if there is a momentum factor associated with investing in American Resources Corp.
Regressed Prices |
| Timeline |
Also Currently Popular
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether American Resources Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Resources' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of American Resources Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on American Resources Corp Stock:Check out American Resources Correlation, American Resources Volatility and American Resources Alpha and Beta module to complement your research on American Resources. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
American Resources technical stock 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, stock market cycles, or different charting patterns.