British Amer (South Africa) Alpha and Beta Analysis
| BTI Stock | 68,310 10.00 0.01% |
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as British American Tobacco. It also helps investors analyze the systematic and unsystematic risks associated with investing in British Amer over a specified time horizon. Remember, high British Amer'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 British Amer's market risk premium analysis include:
Beta (0.15) | Alpha 0.11 | Risk 1.16 | Sharpe Ratio 0.0662 | Expected Return 0.0768 |
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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British Amer Market Premiums
Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. British Amer market risk premium is the additional return an investor will receive from holding British Amer 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 British Amer. 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 British Amer's performance over market.| α | 0.11 | β | -0.15 |
British Amer 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 British Amer's Buy-and-hold return. Our buy-and-hold chart shows how British Amer performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.British Amer Market Price Analysis
Market price analysis indicators help investors to evaluate how British Amer stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading British Amer shares will generate the highest return on investment. By understating and applying British Amer stock market price indicators, traders can identify British Amer position entry and exit signals to maximize returns.
British Amer Return and Market Media
The median price of British Amer for the period between Sun, Sep 1, 2024 and Sat, Nov 30, 2024 is 63750.0 with a coefficient of variation of 3.97. The daily time series for the period is distributed with a sample standard deviation of 2542.95, arithmetic mean of 64046.97, and mean deviation of 2186.51. The Stock did not receive any noticable media coverage during the period. Price Growth (%) |
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About British Amer 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 British or other stocks. Alpha measures the amount that position in British American Tobacco 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 British Amer 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, British Amer's short interest history, or implied volatility extrapolated from British Amer options trading.
Build Portfolio with British Amer
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 British Stock
When determining whether British American Tobacco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of British Amer's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of British American Tobacco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on British American Tobacco Stock:Check out British Amer Backtesting, British Amer Valuation, British Amer Correlation, British Amer Hype Analysis, British Amer Volatility, British Amer History and analyze British Amer Performance. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
British Amer 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.