Praj Industries (India) Alpha and Beta Analysis
| PRAJIND Stock | 810.15 9.85 1.20% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Praj Industries Limited. It also helps investors analyze the systematic and unsystematic risks associated with investing in Praj Industries over a specified time horizon. Remember, high Praj Industries' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation. Key technical indicators related to Praj Industries' market risk premium analysis include:
Beta 0.81 | Alpha 0.16 | Risk 2.92 | Sharpe Ratio 0.0498 | Expected Return 0.15 |
Praj Industries Quarterly Cash And Equivalents |
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Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.
Praj |
Praj Industries Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Praj Industries market risk premium is the additional return an investor will receive from holding Praj Industries long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Praj Industries. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Praj Industries' performance over market.| α | 0.16 | β | 0.81 |
Praj Industries expected buy-and-hold returns
Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Praj Industries' Buy-and-hold return. Our buy-and-hold chart shows how Praj Industries performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Praj Industries Market Price Analysis
Market price analysis indicators help investors to evaluate how Praj Industries stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Praj Industries shares will generate the highest return on investment. By understating and applying Praj Industries stock market price indicators, traders can identify Praj Industries position entry and exit signals to maximize returns.
Praj Industries Return and Market Media
The median price of Praj Industries for the period between Mon, Sep 23, 2024 and Sun, Dec 22, 2024 is 767.25 with a coefficient of variation of 5.82. The daily time series for the period is distributed with a sample standard deviation of 44.42, arithmetic mean of 762.6, and mean deviation of 38.52. The Stock received some media coverage during the period. Price Growth (%) |
| Timeline |
1 | Technical Breakout Stocks Praj Industries, Balrampur Chini and Sun Pharma hit fresh record highs time to buy - The Economic Times | 09/27/2024 |
2 | Praj Industries Q2 Results Profit Falls 14, Misses Estimates - NDTV Profit | 10/25/2024 |
3 | Where is Praj Industries stock headed over the next 3 years Stock Market News - Mint | 12/09/2024 |
About Praj Industries Beta and Alpha
For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including Praj or other stocks. Alpha measures the amount that position in Praj Industries has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Praj Industries in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Praj Industries' short interest history, or implied volatility extrapolated from Praj Industries options trading.
Build Portfolio with Praj Industries
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Other Information on Investing in Praj Stock
Praj Industries financial ratios help investors to determine whether Praj Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Praj with respect to the benefits of owning Praj Industries security.