Aurora Optoelectronics (China) Alpha and Beta Analysis
| 600666 Stock | 2.50 0.03 1.19% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Aurora Optoelectronics Co. It also helps investors analyze the systematic and unsystematic risks associated with investing in Aurora Optoelectronics over a specified time horizon. Remember, high Aurora Optoelectronics' 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 Aurora Optoelectronics' market risk premium analysis include:
Beta (0.15) | Alpha 0.84 | Risk 4.83 | Sharpe Ratio 0.23 | Expected Return 1.12 |
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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Aurora Optoelectronics Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Aurora Optoelectronics market risk premium is the additional return an investor will receive from holding Aurora Optoelectronics 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 Aurora Optoelectronics. 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 Aurora Optoelectronics' performance over market.| α | 0.84 | β | -0.15 |
Aurora Optoelectronics 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 Aurora Optoelectronics' Buy-and-hold return. Our buy-and-hold chart shows how Aurora Optoelectronics performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.Aurora Optoelectronics Market Price Analysis
Market price analysis indicators help investors to evaluate how Aurora Optoelectronics stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Aurora Optoelectronics shares will generate the highest return on investment. By understating and applying Aurora Optoelectronics stock market price indicators, traders can identify Aurora Optoelectronics position entry and exit signals to maximize returns.
Aurora Optoelectronics Return and Market Media
The median price of Aurora Optoelectronics for the period between Sun, Sep 1, 2024 and Sat, Nov 30, 2024 is 1.92 with a coefficient of variation of 26.22. The daily time series for the period is distributed with a sample standard deviation of 0.51, arithmetic mean of 1.96, and mean deviation of 0.46. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About Aurora Optoelectronics 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 Aurora or other stocks. Alpha measures the amount that position in Aurora Optoelectronics 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 Aurora Optoelectronics 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, Aurora Optoelectronics' short interest history, or implied volatility extrapolated from Aurora Optoelectronics options trading.
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Other Information on Investing in Aurora Stock
Aurora Optoelectronics financial ratios help investors to determine whether Aurora 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 Aurora with respect to the benefits of owning Aurora Optoelectronics security.