American Water (Germany) Market Value
| AWC Stock | EUR 119.40 3.40 2.77% |
| Symbol | American |
American Water '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 Water's 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 Water.
| 12/31/2022 |
| 12/20/2024 |
If you would invest 0.00 in American Water on December 31, 2022 and sell it all today you would earn a total of 0.00 from holding American Water Works or generate 0.0% return on investment in American Water over 720 days. American Water is related to or competes with United Utilities, China Water, Superior Plus, SIVERS SEMICONDUCTORS, Reliance Steel, RYOHIN UNSPADR1, and Vanguard Funds. American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United State... More
American Water 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 Water's 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 Water Works upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.09) | |||
| Maximum Drawdown | 8.06 | |||
| Value At Risk | (3.34) | |||
| Potential Upside | 2.2 |
American Water Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for American Water's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as American Water's standard deviation. In reality, there are many statistical measures that can use American Water historical prices to predict the future American Water's volatility.| Risk Adjusted Performance | (0.05) | |||
| Jensen Alpha | (0.12) | |||
| Total Risk Alpha | (0.16) | |||
| Treynor Ratio | (0.25) |
American Water Works Backtested Returns
American Water Works secures Sharpe Ratio (or Efficiency) of -0.0836, which signifies that the company had a -0.0836% return per unit of standard deviation over the last 3 months. American Water Works exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm American Water's risk adjusted performance of (0.05), and Mean Deviation of 1.17 to double-check the risk estimate we provide. The firm shows a Beta (market volatility) of 0.43, which signifies possible diversification benefits within a given portfolio. As returns on the market increase, American Water's returns are expected to increase less than the market. However, during the bear market, the loss of holding American Water is expected to be smaller as well. At this point, American Water Works has a negative expected return of -0.14%. Please make sure to confirm American Water's mean deviation, standard deviation, total risk alpha, as well as the relationship between the coefficient of variation and jensen alpha , to decide if American Water Works performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.55 |
Good reverse predictability
American Water Works has good reverse predictability. Overlapping area represents the amount of predictability between American Water time series from 31st of December 2022 to 26th of December 2023 and 26th of December 2023 to 20th of December 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 Water Works price movement. The serial correlation of -0.55 indicates that about 55.0% of current American Water price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.55 | |
| Spearman Rank Test | -0.66 | |
| Residual Average | 0.0 | |
| Price Variance | 69.1 |
American Water Works lagged returns against current returns
Autocorrelation, which is American Water 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 Water's stock expected returns. We can calculate the autocorrelation of American Water returns to help us make a trade decision. For example, suppose you find that American Water 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 Water 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 Water stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if American Water stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in American Water stock over time.
Current vs Lagged Prices |
| Timeline |
American Water Lagged Returns
When evaluating American Water's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of American Water stock have on its future price. American Water 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 Water autocorrelation shows the relationship between American Water stock current value and its past values and can show if there is a momentum factor associated with investing in American Water Works.
Regressed Prices |
| Timeline |
Currently Active Assets on Macroaxis
Additional Information and Resources on Investing in American Stock
When determining whether American Water Works is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Water Works Stock. Highlighted below are key reports to facilitate an investment decision about American Water Works Stock:Check out American Water Correlation, American Water Volatility and American Water Alpha and Beta module to complement your research on American Water. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
American Water 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.