American Water (Germany) Alpha and Beta Analysis
| AWC Stock | EUR 117.80 1.60 1.34% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as American Water Works. It also helps investors analyze the systematic and unsystematic risks associated with investing in American Water over a specified time horizon. Remember, high American Water'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 American Water's market risk premium analysis include:
Beta (0.20) | Alpha (0.17) | Risk 1.6 | Sharpe Ratio (0.09) | Expected Return (0.15) |
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.
American |
American Water Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. American Water market risk premium is the additional return an investor will receive from holding American Water 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 American Water. 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 American Water's performance over market.| α | -0.17 | β | -0.2 |
American Water 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 American Water's Buy-and-hold return. Our buy-and-hold chart shows how American Water performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.American Water Market Price Analysis
Market price analysis indicators help investors to evaluate how American Water stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading American Water shares will generate the highest return on investment. By understating and applying American Water stock market price indicators, traders can identify American Water position entry and exit signals to maximize returns.
American Water Return and Market Media
The median price of American Water for the period between Mon, Sep 23, 2024 and Sun, Dec 22, 2024 is 127.85 with a coefficient of variation of 2.6. The daily time series for the period is distributed with a sample standard deviation of 3.3, arithmetic mean of 127.06, and mean deviation of 2.76. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About American Water 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 American or other stocks. Alpha measures the amount that position in American Water Works 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 American Water 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, American Water's short interest history, or implied volatility extrapolated from American Water options trading.
Build Portfolio with American Water
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
Additional Information and Resources on Investing in American Stock
When determining whether American Water Works 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 American 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 American Water Works Stock. Highlighted below are key reports to facilitate an investment decision about American Water Works Stock:Check out American Water Backtesting, American Water Valuation, American Water Correlation, American Water Hype Analysis, American Water Volatility, American Water History and analyze American Water Performance. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
American Water 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.