American Assets Trust (AAT) Soars 0.86% to March 2025 High

The share price of American Assets Trust (AAT) rose to its highest level since March 2025 today, with an intraday gain of 0.86%.

The strategy of buying AAT shares after they reach a recent high and holding for 1 week resulted in poor performance over the past 5 years. The total increase over the past four days was 2.30%, with an intraday gain of 1.57% on the day of the merger announcement. However, the strategy yielded a return of only 0.16%, significantly underperforming the benchmark return of 49.45%. The excess return was negative, with an excess return of -49.28%, indicating that the strategy not only failed to generate gains but also resulted in significant losses relative to the benchmark. The CAGR was 0.07%, which is very low compared to the benchmark CAGR. The strategy had a maximum drawdown of -34.82% and a Sharpe ratio of 0.00, indicating high risk and no return relative to the risk taken.

American Assets Trust has experienced a surge in implied volatility for its stock options, indicating heightened investor interest and potential market movements. This increase in volatility suggests that investors are closely monitoring the stock, anticipating significant price fluctuations.

The stock has found support at the $20.23 level, which has been reinforced by accumulated trading volume. This support level presents a potential buying opportunity for investors, as an upward reaction is expected following the recent price movements.

Despite the recent gains, the stock's current price remains significantly lower than its 52-week high of $29.15. This discrepancy highlights the potential for further price appreciation, as the stock continues to recover from its previous lows.