AMERICAN INTERNATIONAL GROUP INC

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.

Trend

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.

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