Certainly something like $\overline{A_1}$, because it is closure of $A_1$. But I understand, that the rule may look a bit too long for you. Indeed, there is no italic correction for math font. If you prefer a bit shorter version, see, e.g. answers to Appearance issues with \bar{} and \underline{}.
I can't explain why the problem arises in the first place, but one solution is to box the initial item, and apply the \hat at the end. I also provide a 2nd alternative where I apply the \hat only to the \sigma; that may be preferable.
Best Answer
Does this help (
\overline
instead of\bar
)?Related