37.49 +0.2 (+0.54%) Sell

AIG investors hold onto their investments as it marginally outperforms

13 min read

AMERICAN INTERNATIONAL GROUP INC delivered stellar performance on Friday. It gained +0.54% to close at 37.49. It is currently trading -42% below it's 52 week high of 64.8.

[Themes containing AIG]

AIG is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +28.07% for investors.


AIG has been underperforming the SP500 index in recent time, after having outperformed till 5 Jan, 2016. Over the last 2 years 11 months and 10 days, AIG underperformed the SP500 index on 52% days.

AIG returned losses on 62% days in the last three months. During this time, it delivered on average -0.54% per day. It delivered it's worst daily return of -5.58%, during this period, on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 30 Oct, 2018 and went on till 6 Nov, 2018. The bullish trend returned +11.94% to investors. This was followed by a bearish trend that started on 29 Nov, 2018 and ended on 11 Dec, 2018. This bearish trend lost -18.82% of investor capital.

AIG had 6 profitable and 6 loss making months over the last year. During the last year, AIG underperformed SP500 index on monthly return basis. AIG was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -22.21% compared to -7.28% returned by SP500 index in Oct 2018. AIG had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both AIG and SP500 index significantly outperform during months when quarterly/annual results are announced.

The studios don't finance anymore, they get outside funds.
-- Robert Rodriguez

AIG is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in AIG's volatility from 17 Sep, 2018 to 12 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that AIG has significant positive skewness in it's return distribution. This indicates that investors can expect AIG to recover from drawdowns quickly. Which makes AIG a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in AIG derivatives at this moment can consider 'Bear Put Spread' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than AIG. Therefore, SP500 must receive a lower allocation than AIG in your portfolio. SP500 index usually has shorter drawdown period than AIG.

On a general note (since you are interested in AIG), SBOT has performed really well and deserves to be closely tracked for investment opportunities.

Want to improve your Portfolio's performance?

Spotalpha's Portfolio optimizer is all you need to improve your returns and reduce your risk.
Optimize Portfolio NOW
Symbol Price {{retType}} | Tr.
{{detail.symbol}} {{detail.close}} {{detail.priceChange}}  {{detail.pctChange}}%  {{}} {{detail.trend}} 
If you liked what you read here ...

... we have a small favour to ask. Help us bring the power of algorithmic trading strategies to individual investors.

All content in this article was automatically generated by algorithms. This ensures that there are no human biases in the analysis provided. This approach to investing is not new and has been around for more than three decades. Yet, it has been available to only the most affluent or elite investors leaving individual investors to trade on emotions (such as fear and greed), intuition and poor analysis from third-parties. We want to change this.

We want to empower investors with all the tools and analysis required by them to make a rational investment decision.

If you found Spotalpha useful, consider making a contribution. For as little as $5 you can support our efforts and it takes less than a minute. Thank you. Contribute
Share with friends   WhatsApp   Facebook   Twitter