FNB ETN (South Africa) Alpha and Beta Analysis
| GSETNQ Etf | 3,190 47.00 1.45% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as FNB ETN GSACHSQ. It also helps investors analyze the systematic and unsystematic risks associated with investing in FNB ETN over a specified time horizon. Remember, high FNB ETN'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 FNB ETN's market risk premium analysis include:
Beta 0.4 | Alpha 0.6 | Risk 3.25 | Sharpe Ratio 0.26 | Expected Return 0.85 |
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.
FNB |
FNB ETN Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. FNB ETN market risk premium is the additional return an investor will receive from holding FNB ETN 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 FNB ETN. 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 FNB ETN's performance over market.| α | 0.60 | β | 0.40 |
FNB ETN Opportunities
FNB ETN Return and Market Media
The Etf did not receive any noticable media coverage during the period. Price Growth (%) |
| Timeline |
About FNB ETN 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 FNB or other etfs. Alpha measures the amount that position in FNB ETN GSACHSQ 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 FNB ETN 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, FNB ETN's short interest history, or implied volatility extrapolated from FNB ETN options trading.
Build Portfolio with FNB ETN
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
Other Information on Investing in FNB Etf
FNB ETN financial ratios help investors to determine whether FNB Etf 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 FNB with respect to the benefits of owning FNB ETN security.