CME (Germany) Alpha and Beta Analysis
| MX4A Stock | EUR 228.75 0.05 0.02% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as CME Group. It also helps investors analyze the systematic and unsystematic risks associated with investing in CME over a specified time horizon. Remember, high CME'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 CME's market risk premium analysis include:
Beta 0.6 | Alpha 0.27 | Risk 1.3 | Sharpe Ratio 0.2 | Expected Return 0.26 |
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.
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CME Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. CME market risk premium is the additional return an investor will receive from holding CME 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 CME. 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 CME's performance over market.| α | 0.27 | β | 0.60 |
CME 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 CME's Buy-and-hold return. Our buy-and-hold chart shows how CME performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.CME Market Price Analysis
Market price analysis indicators help investors to evaluate how CME stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading CME shares will generate the highest return on investment. By understating and applying CME stock market price indicators, traders can identify CME position entry and exit signals to maximize returns.
CME Return and Market Media
The median price of CME for the period between Fri, Sep 27, 2024 and Thu, Dec 26, 2024 is 210.29 with a coefficient of variation of 5.3. The daily time series for the period is distributed with a sample standard deviation of 11.24, arithmetic mean of 212.02, and mean deviation of 9.47. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About CME 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 CME or other stocks. Alpha measures the amount that position in CME Group 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 CME 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, CME's short interest history, or implied volatility extrapolated from CME options trading.
Build Portfolio with CME
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
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Additional Information and Resources on Investing in CME Stock
When determining whether CME Group is a strong investment it is important to analyze CME's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact CME's future performance. For an informed investment choice regarding CME Stock, refer to the following important reports:Check out CME Backtesting, CME Valuation, CME Correlation, CME Hype Analysis, CME Volatility, CME History and analyze CME Performance. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
CME 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.