UPM Kymmene (Germany) Alpha and Beta Analysis

RPL Stock  EUR 25.99  0.16  0.62%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as UPM Kymmene Oyj. It also helps investors analyze the systematic and unsystematic risks associated with investing in UPM Kymmene over a specified time horizon. Remember, high UPM Kymmene's 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 UPM Kymmene's market risk premium analysis include:
Beta
(0.24)
Alpha
(0.14)
Risk
1.43
Sharpe Ratio
(0.09)
Expected Return
(0.13)
Please note that although UPM Kymmene alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., Dow Jones Industrial index.) So in this particular case, UPM Kymmene did 0.14  worse than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of UPM Kymmene Oyj stock's relative risk over its benchmark. UPM Kymmene Oyj has a beta of 0.24  . As returns on the market increase, returns on owning UPM Kymmene are expected to decrease at a much lower rate. During the bear market, UPM Kymmene is likely to outperform the market. .
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.
  
Check out UPM Kymmene Backtesting, UPM Kymmene Valuation, UPM Kymmene Correlation, UPM Kymmene Hype Analysis, UPM Kymmene Volatility, UPM Kymmene History and analyze UPM Kymmene Performance.

UPM Kymmene Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. UPM Kymmene market risk premium is the additional return an investor will receive from holding UPM Kymmene 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 UPM Kymmene. 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 UPM Kymmene's performance over market.
α-0.14   β-0.24
100%

UPM Kymmene 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 UPM Kymmene's Buy-and-hold return. Our buy-and-hold chart shows how UPM Kymmene performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.
100%

UPM Kymmene Market Price Analysis

Market price analysis indicators help investors to evaluate how UPM Kymmene stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading UPM Kymmene shares will generate the highest return on investment. By understating and applying UPM Kymmene stock market price indicators, traders can identify UPM Kymmene position entry and exit signals to maximize returns.

UPM Kymmene Return and Market Media

The median price of UPM Kymmene for the period between Sun, Sep 22, 2024 and Sat, Dec 21, 2024 is 27.01 with a coefficient of variation of 5.07. The daily time series for the period is distributed with a sample standard deviation of 1.38, arithmetic mean of 27.16, and mean deviation of 1.2. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
JavaScript chart by amCharts 3.21.15OctNovDec -10-505
JavaScript chart by amCharts 3.21.15UPM Kymmene Oyj UPM Kymmene Oyj Dividend Benchmark Dow Jones Industrial
       Timeline  

About UPM Kymmene 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 UPM or other stocks. Alpha measures the amount that position in UPM Kymmene Oyj 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 UPM Kymmene 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, UPM Kymmene's short interest history, or implied volatility extrapolated from UPM Kymmene options trading.

Build Portfolio with UPM Kymmene

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

Build Diversified Portfolios

Align your risk with return expectations

By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations

Other Information on Investing in UPM Stock

UPM Kymmene financial ratios help investors to determine whether UPM 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 UPM with respect to the benefits of owning UPM Kymmene security.

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