Walmart (Brazil) Alpha and Beta Analysis

WALM34 Stock  BRL 34.86  0.99  2.76%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Walmart. It also helps investors analyze the systematic and unsystematic risks associated with investing in Walmart over a specified time horizon. Remember, high Walmart'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 Walmart's market risk premium analysis include:
Beta
0.0713
Alpha
0.4
Risk
1.51
Sharpe Ratio
0.26
Expected Return
0.39
Please note that although Walmart 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, Walmart did 0.40  better 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 Walmart stock's relative risk over its benchmark. Walmart has a beta of 0.07  . As returns on the market increase, Walmart's returns are expected to increase less than the market. However, during the bear market, the loss of holding Walmart is expected to be smaller as well. .
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 Walmart Backtesting, Walmart Valuation, Walmart Correlation, Walmart Hype Analysis, Walmart Volatility, Walmart History and analyze Walmart Performance.
For information on how to trade Walmart Stock refer to our How to Trade Walmart Stock guide.

Walmart Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Walmart market risk premium is the additional return an investor will receive from holding Walmart 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 Walmart. 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 Walmart's performance over market.
α0.40   β0.07

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

Walmart Market Price Analysis

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

Walmart Return and Market Media

The median price of Walmart for the period between Tue, Sep 24, 2024 and Mon, Dec 23, 2024 is 29.82 with a coefficient of variation of 10.69. The daily time series for the period is distributed with a sample standard deviation of 3.3, arithmetic mean of 30.9, and mean deviation of 2.85. The Stock did not receive any noticable media coverage during the period.
 Price Growth (%)  
       Timeline  

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

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Additional Information and Resources on Investing in Walmart Stock

When determining whether Walmart is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Walmart Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Walmart Stock. Highlighted below are key reports to facilitate an investment decision about Walmart Stock:
Check out Walmart Backtesting, Walmart Valuation, Walmart Correlation, Walmart Hype Analysis, Walmart Volatility, Walmart History and analyze Walmart Performance.
For information on how to trade Walmart Stock refer to our How to Trade Walmart Stock guide.
You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Walmart technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Walmart technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Walmart trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...